August 31, 2016
August 30, 2016
All projected interest/pension earnings, always depend on the real economy being able to deliver these down the line.
August 29, 2016
More than low-growth, central bankers fear having to explain risk-weighted capital requirements for banks
August 28, 2016
Universities, especially tenured professors, sometimes neglect their vital social role as intellectual vigilantes.
August 27, 2016
If I was young and my pension fund was to invest in a bridge, I would want and need for it to lead to somewhere great!
August 26, 2016
Regulators tell banks “Occupy what’s safe”; and so expel widows, orphans and pension funds, to handle what’s risky
August 25, 2016
We have jobs because banks risked their (and our parents) money on “the risky”. Let’s give our kids the same chance
August 24, 2016
Much of those interest margins banks now obtain financing what’s perceived safe, used to belong to pension funds.
August 23, 2016
BoE, if you really believe jobs come first, why not capital requirements for banks based on job creation ratings?
August 22, 2016
Ms Merkel, Mr Renzi and Mr Hollande. Do you want to tackle growth and youth issues? Read the memo or give me a call.
High interests do not solve any retirement problems, if there is no real economic growth to pay for these
August 19, 2016
Even sophisticated up-in-the-fronters can fall victims to populists, like those dressed up as bank regulators.
Sir, John Lloyd correctly writes that “rising inequality, wage stagnation and workplace insecurity merge with concern about fragmenting communities, exacerbated by fear of unregulated immigration and terrorism…produces a popular energy” that can be captured by populists. “For left-behinders, populists paint a picture of a better future” August 17.
But not only left-behinders can be victims of cheap populism, those up-in-the-front too, and populism can come in all shapes of form, including camouflaged as bank regulations.
Like that populism imbedded in: “If banks avoid risks, this will keep them from failing, and we will all prosper. So more risk more capital - less risk less capital”
And what is amazing is to see the how many famed journalists, Nobel Prize winners, academicians and politicians, fell for it, ignoring that what is risky is already made safer by being perceived as risky, but made even riskier if perceived as safe.
And what is even more amazing is how, even after a crisis brought on by excessive bank exposures against too little capital to what was perceived as safe; and an economy that is stagnating and not showing increased productivity, they still can’t open their eyes to the distortions in the allocation of bank credit to the real economy caused by that grievous piece of bank regulation.
Or is it like John Kenneth Galbraith said: “If one is pretending to knowledge one does not have, one cannot ask for explanations to support possible objections.” “Money: Whence it came where it went” 1975.