Pragmatic entrepreneurs don’t stand a chance against committed statist ideologues

Sir, Anthony Scaramucci writes on Trump that “he is a pragmatic entrepreneur who understands economic incentives better than any head of state in modern history” “These are the policies to restore growth to America” November 12.

Hah! He wishes! Trump wishes! The sad truth is that pragmatic entrepreneurs don’t stand a chance against committed statist ideologues.

Where were those entrepreneurs who stood up and said “No!” in 1988, when bank regulators, deciding on the capital requirements for banks, set the risk weights for the sovereign, meaning government bureaucrats at 0%, and that of entrepreneurs at 100%?

Worse, where are the entrepreneurs who even after 28 years say “No!” to such odious discrimination?

Has Donald Trump any idea about how much more he has had to pay in interests over the years, only as a result of those regulations? I doubt it.

There are of course a lot of pragmatic entrepreneurs who would not object to this kind of regulations, but those are those practicing state cronyism.

So, as I see it government technocrats are bound to eat up Donald Trump alive! In fact, what could be worse, is that he could be so pragmatic so as to think that could be what’s most profitable to him.

@PerKurowski

We all need to get rid of a despicable incestuous crony state capitalism

Sir, when a bank needs no equity, which means it needs no shareholder, in order to make a loan to its government, because its government is declared “absolutely risk-free”, and therefore the government has much easier access to bank credit than does a normal citizen, like a small business or entrepreneur, that classifies as a serious case of a despicable incestuous crony state capitalism. 

In this respect, John Huntsman, writing “True conservatives despise America´s crony capitalism” July 19, would be well served by looking at how bank regulators have been able to introduce, in his USA, odious discriminations in favor of what is officially perceived as “not risky” and against what is perceived as “risky”, something which must be completely anathema in a “Home of the Brave”. 

Huntsman writes about “the need [of] financial reform so that innovators and entrepreneurs have access to capital without turning our banking system into a public utility”. For that, at this moment, nothing is as important as throwing out the regulatory paradigm of capital requirements for banks based on perceived risk of default… besides, he should know, that in banking, what is perceived as risky, does never ever pose a major systemic risk.