What quality-of-spending rating do the bureaucrats merit…an AAA?

If a banker lends to someone who wants to risk his money on for example an environmentally sound project but has no credit rating, then the bank has to put up 8 percent in capital. If instead it lends that same money to the Government and it is the Congressmen who decide which are the environmentally sound projects to be financed, the bank does not have to put up any equity at all.

If the world is going to keep assigning so much importance to the credit ratings then it must complement this with some quality-of-spending ratings, since the risk for the society in any financing is not only getting its money back but, even more importantly, that it is well spent.

Nouriel Roubini in “The risk of a double-dip recession” Augusts 24 gives about ten reasons for ongoing economic problems, but he does not even mention the above ongoing regulatory mindlessness; and he also writes in relation to the “risks associated with exit strategies from the massive monetary and fiscal easing; policy makers are damned if they do and damned if they don’t”. Mr Roubini, honestly, when was the last time you saw a really damned policy maker? As I see it they are all having the time of their life!