September 06, 2016
Sir, Gideon Rachman tries to imagine the questions future historians will ask about today’s political events drafts a history exam for students graduating in 2066, “An exam paper from the future” September 6
I can certainly imagine a couple of other interesting questions, the problem though is that including these, would question some who are currently active and would not like to be questioned, like perhaps the exam-drafter himself
How come regulators, with risk weighted capital requirements, decided without any empirical analysis, that what is perceived as risky is riskier for the banking system than what is perceived as safe?
How come regulators, by allowing banks to leverage equity differently with different assets, did not understand they would be distorting the allocation of bank credit to the real economy?
How come leading financial newspapers, and its journalists, mostly ignored the thousand of letters sent to them by a reader and that were related to those two previous questions?