Mr. John Kay, a clogged tube, not a “leaky bucket”, stops quantitative easing from helping the real economy.

Sir, I refer to John Kay´s “Quantitative easing and the curious case of the leaky bucket” July 10.

Kay fears that quantitative easing “may not benefit the non-financial economy much, but they are helpful to the financial services sector and those who work in it.”, and he is right.

But the allegory of the leaky bucket is not perfect, because what we, if plumbers, would have in front of us, is more a curious case of a voluntarily clogged tube.

And I refer of course to that tube through which bank credit is supposed to flow to the real economy, but which has now been clogged, on purpose, by bank regulators, by means of inserting a higher capital requirements cork, to assure that bank credit does not flow to “The Risky”, like to small and medium businesses and entrepreneurs.