Friday, January 27, 2012

Caffeine, Soy Milk, and Central Banking

Coffee is no long-term replacement for sleep. It's not even a very good short-term replacement, although, in a pinch, it helps.

Likewise, we should not be relying nearly as much on central banking as we are, when we need fundamental reform. Mainly, we need to shrink the size of the financial sector and give the biggest banks an incentive to break themselves up. Capital requirements should increase steeply with size.

Such were the thoughts that ran through my mind as I ordered, a little self-righteously, a tasty Indian Spice soy milk hot chocolate, after lunch, at Whole Foods.