But they should console themselves that they have flexibility under Basel 2 to reward or punish risk-management performance, as do the rating agencies.
They don't punish risk-taking the way many other nations do.
Kerry would also punish risk-takers by increasing the capital gains levy and would reduce the supply of capital by rescinding President Bush's dividend tax reductions.
Rather than punish risk-taking at the company, Jobs did just the opposite: your only fear when you went to him with a new idea was that it wasn't bold enough.
"Worries about China, the endless drop in oil prices and even new geopolitical tensions pounded the markets, punishing risk assets with a flight to quality that was in full swing," they wrote in a research note entitled "What's the Chinese for 'ouch'?" Chinese stock markets were suspended twice in a week after 7% falls tripped a new circuit breaker mechanism.
"Worries about China, the endless drop in oil prices and even new geopolitical tensions pounded the markets, punishing risk assets with a flight to quality that was in full swing," they wrote, in a research note entitled: What's the Chinese for "ouch"?
Equity markets, meanwhile, have punished risk-takers like NRG that are trying to actively reshape their business models.
The collapse of the Nasdaq became a common shock -- not unlike the oil shock of the 1970's -- that punished risk-takers everywhere.
A limited default, like rescheduling combined with modest write-downs, would make the task more manageable and would have the benefit of appropriately punishing risk-blind lenders and complacent politicians.
The risks of catastrophe are too great to abide by some faith that, if we just let the markets punish the risk takers, all will be fine.
But it has since become clear that Cyprus has indeed become a form of model, signaling the shift in emphasis away from taxpayer-funded bailouts to large haircuts for investors, a change intended to encourage more responsible banking, punish excessive risk-taking and curb the casino capitalism of international finance.
