October 31, 2017

If today Luther protested the high priests in the Basel Committee, where would he nail his Theses? Twitter, Facebook?

Sir, Kate Maltby writes: “Luther… backed by the painstaking detail of a scholar, took an intellectual stand against the most powerful forces of his day. But Lutheranism ushered in an age in which debates were won by those who read the sources and rejected received interpretations.” “What did Luther ever do for us? Less than we like to think” October 31, 2017

As you know I have obsessively, since more than a decade, with more than 2.600 letters, been nailing to FT my arguments against the maddening stupid bank regulations the Basel Committee for Banking Supervision has decreed.

These regulations not only distort the allocation of credit to the real economy (millions of entrepreneurs have not gotten their opportunity to a bank credit only because of these regulations); but also because in terms of stability, the only thing it promotes is that when a big crisis happens, banks will stand there with especially little capital (as the 20% risk weight of dangerous AAA rated, and the 150% for the innocuous below BB- rated evidences). 

So I want to take this opportunity today, when “five hundred years ago, on October 31 1517, Martin Luther took up a hammer and nailed his 95 Theses to the door of All Saints’ Church in Wittenberg” to ask you, where would Martin Luther nail his Theses today? Not in FT…perhaps in Twitter or ​Facebook?