May 29, 2015
Stop blaming low productivity on the “bonus culture” there are even worse cultures, like the Basel Committee’s
FT, I’ve blown the whistle on bank regulator’s foul play many times. But Gillian Tett does not want to hear it. Why?
May 27, 2015
I refuse to believe in the Basel Committee’s nonsense of government bureaucrats using bank credit better than SMEs
All finance is great when debtors have a good plan… Force-feeding debtors is worse than feeding geese for foie gras
Martin Wolf, absent conflicts of interest, and with perfect information, would there even be financial markets?
May 26, 2015
FT, do you really think credit-risk-weighted capital requirements for banks do not cause lower productivity?
William Coen. Do you really think that government bureaucrats use bank credit more productively that SMEs and entrepreneurs?
Risk weights for bank credit not used productively: for bureaucrats 0%; for SMEs 100%. And FT still wonders what went wrong?
May 25, 2015
If we get a copyright on our own personal data and preferences, then we have something to trade with.
Let us not ignore the criminally bad bank regulators who manipulated and distorted the bank credit markets.
The Basel Accord 1988 guaranteed hysteresis, economic Alzheimer. Was it because of regulators’ memory loss or ideology?
Hysteresis can be described as a permanent weakening of the capacity to respond as a consequence of memory loss… a sort of an economic Alzheimer illness.
Sir, Claire Jones mentions that, “Hysteresis’s first brush with economic fame was in 1986, when it was used by Mr Blanchard and Lawrence Summers to explain Europe’s last brush with high joblessness”, “Hysteresis’ returns to Europe as central bank frets over recovery” May 25.
In1988, with the Basel Accord (Basel I), regulators adopted the use of credit-risk-weighted capital (equity) requirements for banks and set the following risk weights: Lending to the government = Zero percent risk weight; and lending to the citizens’ SMEs and entrepreneurs = 100 percent risk weight.
Sir, with regulators displaying such a total loss of memory about the importance of the private sector; or ideologically engaging in such obnoxious manipulation and distortion of the bank-credit markets in favor of the public sector… of course hysteresis had to follow.
The consequences of such hysteresis are indeed nefarious. For instance, in 2012, it already caused me to have to write an Op-Ed titled “We need worthy and decent unemployments”.
But, to have the slightest chance to regain our economies’ memory and vitality, we need to denounce what happened and to remove those who block such efforts… whether for reasons of mental sickness or sick ideology.
May 23, 2015
And the pedigree of the AAArisktocracy, thanks to Basel Committee, is worth much more than the markets ever intended.
Though capable Giants could be great at smoothing over a crisis, the not so capable could help more getting over it.
May 22, 2015
If you fine a bank, request payment in shares, not in cash against their equity, which is societal masochism.
If only our bank regulators in the Basel Committee / FSB grew up to wear long pants and assumed their responsibilities.
May 21, 2015
EY, when focusing on tax in developing economies, why ignore the most pernicious development tax, that on risk-taking?
Limit tax deductibility on what is paid to a CEO, to 10 times the average salary. That sends a discreet social message.