The worst with some of Europe’s technocratic busybodies” is that they are just so dumb.

Sir Wolfgang Münchau in “The dangers of Europe’s technocratic busybodies” July 15, dares Europe to keep on testing that untested mother of all liquidity injection mechanisms that quantitative easing signifies… but not a word about daring our banks to give small short term loans at high interest rates to those perceived as risky, like the small and medium businesses and entrepreneurs, those operating on the margins of the real economy, those we most count on to come up with the next generation of jobs for our youth.

Because that is exactly what happens when regulators allow banks to hold much less capital against loans to those perceived as absolutely safe, and thereby allow banks to earn much higher risk-adjusted expected return on equity when lending to The Infallible, the sovereign and the AAAristocracy, that when lending to The Risky.

Talk about dangerously dumb technocratic busybodies!