Ah, a man after our own heart (we too have written about Pollyanna markets and complacency about risk). In a nicely understated piece at Seeking Alpha, “Short-Lived Economic Pessimism: Pollyanna is Back – With a Vengeance,” Michael Panzer writes about how various regulators have been perternaturally cheerful this week.The piece is very much worth reading in its entirety.
One development is that the EU’s Internal Market Commission decided to leave private equity fund alone. In a Reuters’ story, Commissioner Charlie McCreevy said:
…when a major default does occur … that markets will adjust, amateurs will get driven out, and sound and sensible banking principles will be restored.
Fools get parted from their money. And fools posing as professionals as well as professionals behaving like fools – deserve to be parted from their money.
That’s the kind of quote people live to regret.
Similarly, Federal Reserve Bank of San Francisco President Janet Yellen is feeling better about the housing market and a presidential panel saw no reason to increase regulation of hedge funds.