May 06, 2010

They hold too many Greek bonds, courtesy of the communists in the Basel Committee

Sir Gillian Tett, in “Grim echoes of Wall Street crisis as investors face mental Rubicon” May 6, asks “How many Greek bonds do German banks hold? The simple answer is too many! It could not be any other way with regulators who have allowed banks to leverage their capital 62.5 times to one in the case of bonds rated like those of Greece, and only 12.5 times to one when lending to small businesses and entrepreneurs.

Don’t you get it? For all practical purposes these regulators in Basel are nothing but disguised communists.