March 24, 2021
March 23, 2021
A new monetary order requires the old regulatory order.
March 08, 2021
Has Thatcherism run its course, or has Thatcherism been run off its course?
March 03, 2021
Before aiming at any target, central banks must cure their shortsightedness
February 23, 2021
Bank capital requirements or bank leverage allowances?
January 31, 2021
Basel Committee’s risk weighted bank capital requirements is fodder for our wishful thinking hopes.
January 28, 2021
Macroeconomic theory stands no chance while autocratic regulators distort the allocation of bank credit.
January 27, 2021
What America (and much of the rest of the world) needs is to free itself from the clutches of statist/communist bank regulators.
December 14, 2020
Restoring healthy economic growth requires, sine qua non, getting rid of the distortions in the allocation of bank credit.
December 09, 2020
What would the Milton Friedman of 50 years ago, have thought of the Martin Wolf of today?
December 07, 2020
Thou shall not sell carbon emission indulgences
December 06, 2020
Could the Basel Committee learn enough from puzzles and poker so as to correct their misinformation?
@PerKurowski
December 01, 2020
The need for debt to equity conversions is an inescapable reality
November 30, 2020
12 years since, and yet the true cause of the 2008 crisis shall seemingly not be told
November 24, 2020
FT you have the manpower to analyze how risk weighted bank capital requirements distort the allocation of bank credit.
November 09, 2020
By not asking all the questions that need to be asked, journalists also fail society.
PS. My 2019 letter to the Financial Stability Board (FSB)
October 17, 2020
The most dangerous underlying condition of the US, is that like so many other nations, it has been hit by the Polarization Pandemic.
October 16, 2020
Risk taking is the oxygen of all development. God make us daring
October 15, 2020
Let’s be very wary of Big Tech and Governments forming Big Brother Joint Ventures
October 14, 2020
Though meteorologists announce rain, regulators allow banks to operate as if the sun shines.
September 30, 2020
Where would the City of London be if in the 19th Century it had been placed under the thumb of a Basel Committee?
September 15, 2020
Thou shall not sell environmental crimes indulgences
August 15, 2020
Inflation has already returned
June 12, 2020
The privileged subsidizing of sovereign debt that apparently shall not be named
May 30, 2020
Free markets were set up to go bad, because of bad bank regulations.
May 27, 2020
The doom loop between government and banks was created by regulators.
Sir, I refer to Martin Arnold’s “Soaring public debt poised to heap pressure on eurozone, ECB warns” May 27
For the risk weighted bank capital requirements, all Eurozone sovereigns’ debts have been assigned a 0% risk weight, and this even though none of these can print euros on their own. Would there be a “doom loop” between governments and banks if banks needed to hold as much capital when lending to governments as they must hold when lending to entrepreneurs? Of course not!
In a speech titled “Regulatory and Supervisory Reform of EU Financial Institutions – What Next?” given at the Financial Stability and Integration Conference, in May 2011 Sharon Bowles, the then European Parliament’s Chair Economic and Monetary Affairs opined:
“I have frequently raised the effect of zero risk weighting for sovereign bonds within the Eurozone, and its contribution to removing market discipline by giving lower spreads than there should have been. It also created perverse incentives during the crisis.”
In March 2015 the European Systemic Risk Board (ESRB) published a report on the regulatory treatment of sovereign exposures. In the foreword we read:
Six years later, and now even more “long overdue”