We all need to get rid of a despicable incestuous crony state capitalism

Sir, when a bank needs no equity, which means it needs no shareholder, in order to make a loan to its government, because its government is declared “absolutely risk-free”, and therefore the government has much easier access to bank credit than does a normal citizen, like a small business or entrepreneur, that classifies as a serious case of a despicable incestuous crony state capitalism. 

In this respect, John Huntsman, writing “True conservatives despise America´s crony capitalism” July 19, would be well served by looking at how bank regulators have been able to introduce, in his USA, odious discriminations in favor of what is officially perceived as “not risky” and against what is perceived as “risky”, something which must be completely anathema in a “Home of the Brave”. 

Huntsman writes about “the need [of] financial reform so that innovators and entrepreneurs have access to capital without turning our banking system into a public utility”. For that, at this moment, nothing is as important as throwing out the regulatory paradigm of capital requirements for banks based on perceived risk of default… besides, he should know, that in banking, what is perceived as risky, does never ever pose a major systemic risk.