October 25, 2014
October 24, 2014
October 23, 2014
Could some bureaucrats wanting to hold on to their reputations and jobs, really be allowed to bring Europe down?
October 22, 2014
Europe must allow its SMEs to compete on equal footing with its “infallible sovereigns” for bank credit
October 20, 2014
Europe, it doesn’t matter whether you’re Eurozone or not, EU or individual countries… risk aversion will take you down
October 19, 2014
October 18, 2014
Fed’s Janet Yellen, as a leading equal opportunity killer, has no moral right to speak about inequality.
October 17, 2014
FT, if “European project” includes the Basel Committee’s “risk aversion”, the Europe we knew will cease to exist
October 15, 2014
Regulators who darkened the banks in the sun, should not be allowed to shine light on those in the shadows
May I here remind you of some minimum terms we need to lay down before we allow regulators to regulate any banks?
ECB has no moral right to inject any liquidity in Europe, if it is only going to increase the distortions
Warning: The “much more bank equity” puritans, while correct, if told to implement it, might be extremely dangerous
October 14, 2014
October 13, 2014
Regulators have purchased the illusion of bank safety, by forbidding these to finance the risky future.
October 11, 2014
FT, you really believe Germany’s Wirtschaftswunder would be possible without the currently banned risk-taking by banks?
October 10, 2014
A high school ball arranged by a risk adverse Basel Committee could only result in “managed depression”.
The more you stabilize, the more you risk making the system brittle, so the more you really destabilize.
How can a statement issued by one of The-Not-Accountable, ECB’s Mario Draghi, be a “bold statement”?
October 09, 2014
October 08, 2014
There are two kinds of risk appetites. One is dangerously abundant, and the other is dangerously scarce.
Nothing good can result from a credit boom that avoids risky bays and dangerously overcrowds safe havens.
October 07, 2014
Lawrence Summers, if you tell governments there’s abundance, you guarantee your grandchildren much scarcity.
October 06, 2014
QEs were wasted by dangerously overcrowding safe-havens while leaving risky but valuable bays unexplored
The IMF can do a lot for the world, by just denouncing the mistakes of their bank regulation colleagues.
Europe, why would you like to hand over dictatorial monetary policy to a failed bank regulator, like Mario Draghi?
October 05, 2014
October 04, 2014
October 03, 2014
With his track record I would not trust ECB’s Mario Draghi with a firecracker to help the real economy
October 01, 2014
Martin Wolf, why do those against inequality so readily accept inequality in fair access to bank credit?
September 29, 2014
September 27, 2014
Basel regulations infected banks with a risk-taking deficiency virus, which is mortal to the economy
Sir, Tim Harford in reference to recent food regulations in France writes: “Insisting on home made food ensures neither quality nor Frenchness”, “When regulators are all out to dèjenuer” September 27.
And Harford sort of hints at the possibility that regulatory meddling could spell the end to French cooking and, because better influencing taste buds might be roaming freer in Britain, we might end up with a British cuisine. That would clearly be a tragedy for France, but perhaps also for Britain, which I have often felt derives some national pride from its bad cooking.
Harford also reminds us of “International rules of financial stability did not give us financial stability. Just because a problem exists does not mean that a new regulation will solve it”.
Indeed, the risk-weighted capital requirements imposed on banks, and that very clearly signaled that banks should only lend to the safe and not lend to the risky, ensures neither safe banks nor sturdy economies. The first guarantees excessive exposures, backed with very little capital, to what ex ante is perceived as safe but could ex post be very risky; the second, much too little bank exposures to those our economies might most need our banks to be financing, like our “risky” SME’s and entrepreneurs.
Sir, it amazes me how difficult it is for most financial and economy “experts”, which includes you, and Harford, to understand the fact that current Basel regulations have infected our banks with a risk-taking deficiency virus which is mortal for our economies.
PS. I am not sure about the title of Tim Harford's article as it seems not to be a bad idea that all regulators left their jobs and went out to dèjenuer, and left us alone.