Monday, September 14, 2009

Rightsizing nations

[Let's put a cap on the size of banks from The Big Picture by T T Ram Mohan
Large, complex financial institutions are lethal to the financial system. They can fail and when they do, they wreak havoc on the economy.That's why they have to be rescued- as we have seen in the present crisis. We also saw what happens when they are not rescued, as in the case of Lehman Brothers when confidence in the system evaporated... I elaborate on this in my ET column,
Banks that can be run by idiots. I propose a ceiling a bank size- say, 5-10% of GDP. Small banks, manageable banks]

[ONTOGENETIC EFFECTS ON ECOLOGICAL PERFORMANCE: For feeding trials, lizards were carefully approached and an artificial fly resembling a mosquito was placed about 1 m from the lizard to elicit a feeding reaction, which consisted of the lizard chasing the prey item. The maximum speed used by each individual when capturing the prey item (lizards almost always ran after and bit the prey item) was used as the estimate of maximum speed for feeding. Finally, lizards were filmed when moving undisturbed through their habitats with a video camera, and the speeds and distances of all movements were recorded. Quantifying undisturbed locomotion provides an important "baseline" comparison to more typically "maximal" events, such as predator escape or feeding (Irschick, 2000b). Measuring Performance in Nature: Implications for Studies of Fitness Within Populations
Duncan J. Irschick, Department of Ecology and Evolutionary Biology, Tulane University, New Orleans, Louisiana 70118 Integrative and Comparative Biology © 2003 by The Society for Integrative and Comparative Biology]

So, size matters, not only for corporations but also for nations. [TNM]

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