Showing posts with label ex ante. Show all posts
Showing posts with label ex ante. Show all posts
November 16, 2019

Current bank regulations are evidence free rather than evidence based

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Tim Harford suggests, “Pick a topic that matters to you”, “ How to survive an election with your sanity intact ” November 16. Ok. Bank ...
August 05, 2019

Don’t keep adding bank regulations for what is ex ante perceived risky. It is what is ex ante perceived as very safe that should concern us the most.

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Sir, I refer to Sheila Bair discussion of how much banks are to set aside in order to cover for loan losses. “ Congress should stay out of ...
March 08, 2019

Does not common sense dictate that in good times we want our banks to be weary about what they perceive as safe? Does not what’s seen as risky take care of itself?

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Joe Rennison writes: “Investors and rating agencies have warned that companies might struggle to refinance huge debt burdens, resulting in ...
March 04, 2019

We might need to parade current bank regulators down our avenues wearing cones of shame.

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Sir, Patrick Jenkins writes: “Bill Coen, secretary-general of the Basel Committee on Banking Supervision… said auditors should be given res...
November 23, 2018

Which bonds, the high-yield or the low-yield, cause the most sufferings when things go wrong?

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Sir, Robert Smith quotes Inge Edvardsen, head of fixed income sales at Pareto Securities with “High-yield bonds offer high returns with ass...
August 06, 2018

To really understand the 2007-08 crisis, it is the ex ante perceived risks that should be used, and not the ex post understood risks

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Sir, Martin Sandbu, when reviewing Ashoka Mody’s “ EuroTragedy: A drama in nine acts " writes: “Mody nails the biggest policy error of...
March 09, 2018

Ex post dangers are inversely correlated to ex ante perceptions of risk.

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Sir, Stephen King writes: “One of the main “costs” of global economic success… is excessive risk taking. Put simply, the good times don’t t...
March 06, 2018

Beware, the more you trust data, the more you have to be absolutely sure about how to interpret it, and about what to do with it.

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Sir, John Thornhill writes: “In his Alan Turing Institute lecture, MIT professor Sandy Pentland outlined the massive gains that could resul...
March 03, 2018

In terms of estrogen and testosterone, are there differences between bank exposures to what is perceived risky, and risky excessive exposures to what is perceived as safe?

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“ A banker is a fellow who lends you his umbrella when the sun is shining, but wants it back the minute it begins to rain ” Mark Twain ...
December 22, 2017

Ex ante expected real rates of return and ex post real rates of return are apples and oranges

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Gillian Tett referring to “ The Rate of Return on Everything, 1870-2015 ” authored by Oscar Jorda, Katharina Knoll, Dmitry Kuvshinov, Morit...
November 28, 2017

Andy Haldane, I am an economist too, but I can still not make head or tails out of your bank regulations. Please enlighten me with BoE’s “EconoMe”!

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Sir, Chris Giles writes that Bank of England’s chief economist Andy Haldane argues that economists must work harder to help the public unde...
November 25, 2017

Mr. Tim Harford, so you want an intriguing puzzle that might engage your curiosity? Have I got one for you!

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Sir, Tim Harford writes: “Marina Della Giusta and colleagues at the University of Reading recently conducted a linguistic analysis of the t...
March 07, 2017

FT, is not withholding truths, for any reasons of your own, as fake, as fake news pushed for any reasons of its own?

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Sir, I refer to Tim Harford’s “ Hard truths about fake news ”, March 4. Given the fact that juicy/irrelevant or fake news/stories are u...
December 19, 2016

Why has the Financial Times, and other, kept silence for so long about some obvious mistakes in bank regulations?

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Sir, Wolfgang Münchau now finally writes: “We should start making a distinction between the interests of the financial sector and the econo...
December 01, 2016

Because of risk-weighted capital requirements, banks can turn out riskier when engaging in regulatory “risk-shedding”

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Sir, with respect to British banks you write: “risk-shedding would decrease the cost of capital, if the markets could be made to believe in...
October 24, 2016

Post-Crash Economics Society: Risk models & credit ratings are not wrong, the credence bank regulators give these is

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Sir, since I was travelling I missed David Pilling’s “ Crash and learn: should we change the way we teach economics? ” October 1. It di...
September 25, 2016

Could Gillian Tett possibly find something positive in removing the incentives for banks to lend to SMEs and entrepreneurs?

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Sir, Gillian Tett, discussing whether to have or not to have bins, as these could be used by terrorists writes: “Losing them shows …– that ...
September 16, 2016

What’s perceived safe could be much more dangerous than what’s perceived risky. Why is that so hard to understand?

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Sir, Gillian Tett, responding to “Why on earth would anyone buy a bond that yields a negative interest rate?” includes in the answer: “desp...

Governments best take big decisions, when there’s no conflict of interest, no stupid groupthink, and contestability.

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Sir, I come from an country, Venezuela, where privatizations of public owned utilities were based not on who would provide us citizens the ...
May 28, 2016

The “peak end” rule factor is very dangerous. It fools us into interpreting ex post resulting risks, as real ex ante risks.

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Sir, Tim Harford writes about “ How the sense of an ending shapes memory ” May 28 In it Harford refers to the “peak-end rule” that aro...