Sir, bank regulators who presume being able to make our banks safer by assigning different capital requirements on lending based on the perceived default risk of the borrower’s, apply voodoo-regulations.
Because capital requirements make banks lend excessively to “good” sovereigns and to whatever had a triple-A rating, and they also keep us from perceiving the real market rates free of regulatory interference, we are now immersed in a huge crisis.
That even FT keeps on trusting those same voodoo-regulators just shows the tremendous allure their voodoo-promises have.
PS. Loony bank regulations explained in an apolitical red and blue!
PS. Loony bank regulations explained in an apolitical red and blue!