Martin Wolf it is not time for Mario Draghi to open the sluice but to get rid of it.

Sir, Martin Wolf writes “Time again for Draghi to open the sluice” May 14. Why does Martin Wolf not get it? Even when Ingram Pinn’s great illustration so clearly depicts it?

The problem is that the risk-weighted capital requirements for banks constitute a sluice which artificially channels financial resources to where the risk adverse regulators think they should go to, and hinders these to go to where the real economy most needs them.

Wolf writes that “the aim must be to restore a healthy recovery”. Indeed and that must of course begin with destroying that sluice… though of course, the problem with that is that Mario Draghi, as a former chairman for many years of the Financial Stability Board, is one of those who constructed it… and does not want to admit what an extraordinarily bad job they did doing so.

Europe, let your bank credit flow free!

PS. Sir, just to let you know, I am not copying Martin Wolf with this, as he has asked me not to send him any more comments related to the capital requirements for banks, as he understands it all… at least so he thinks.