Trust Your Instincts

The FDR Framework is the backbone for a 21st century financial system. Under this framework, governments ensure that every market participant has access to all the useful, relevant information in an appropriate, timely manner. Market participants have an incentive to analyze this data because they are responsible for all gains and losses.

Blueprint for saving financial system

I thought it would be useful to show how the FDR Framework can be used as the basis for a blueprint to save the global financial system.

The following are a few posts that discuss this blueprint:

How Wall Street rescues Main Street

A "Well-run Bank Needs No Capital"

The FDR Framework provides a roadmap for addressing the European solvency crisis

Contagion:  A Wall Street term to remind regulators that they do not know what is going on

Confirmation of assumptions underlying blueprint
     More on How Wall Street rescues Main Street
     BoE's Andy Haldane confirms that banks can operate with negative book equity
     ECB ends stigma of borrowing from central bank
     Placing firewall around deposits allows banks to recognize losses today
     Analysts not overwhelmed by data

Is Spain going to be the first to implement the blueprint?

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About this blog

A blog on all things about Wall Street, global finance and any attempt to regulate it. In short, the future of banking and the global financial system.

This blog will be used to discuss and debate issues not just for specialists, but for anyone who cares about creating good policies in these areas.

At the heart of this blog is the FDR Framework which uses 21st century information technology to combine a philosophy of disclosure with the practice of caveat emptor (buyer beware).

Under the FDR Framework, governments are responsible for ensuring that all market participants have access to all the useful, relevant information in an appropriate, timely manner. Market participants have an incentive to use this data because under caveat emptor they are responsible for all gains and losses on their investments; in short, Trust but Verify.

This blog uses the FDR Framework to explain the cause of the financial crisis and to evaluate financial reforms like the ABS Data Warehouse.

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© 2010, TYI, LLC. This blog contains the current opinions of the author. The author’s opinions are subject to change without notice. This blog is distributed for informational purposes and the author's enjoyment only. Forecasts, estimates, and certain information contained herein are based upon proprietary research and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed.
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