If little I was president of the ECB

Sir, Jerome Booth in “Europe must seize the day now that Draghi has acted” writes that “However far away, if financial markets see light at the end of the tunnel in the form of a credible plan, hope can return.” Absolutely!

And that is why I fight so much for the real truth of this crisis to come out, so that market understands the why of it and sees it corrected… currently all stimulus efforts are being poured on basically the same economy as before, and that does not help the credibility of these. 

If I was the president of the ECB I would come out and explain how this crisis was caused, by excessive regulatory reliance on our capacity to measure risks, and consequently excessive incentives given to banks when engaging with what was officially perceived as not-risky, and consequently the discrimination that signified against the officially “risky” like small businesses and entrepreneurs. And then, I would immediately present a plan of how to correct the banking system for that monumental regulatory mistake. 

And I am sure markets would begin to understand how they were distorted and therefore begin to see that light which allows it, in the middle of all rubble and destruction, to sing that hopeful “Oh, what a wonderful morning!” 

But I am not the president of ECB, Mario Draghi is, one of the failed regulators.