May 01, 2014

What’s the use of splendid arteries in the US if its heart does not pump?

Sir, you again express concern about that “US infrastructure is crumbling” May 1, and that is very nice of you. But, considering you are the Financial Times, and not the Bridge Construction Times, should you not better concentrate on how the heart of the financial system, the banks, in “the land of the free and the home of the brave”, is pumping less and less of that true risk-taking needed in order to keep the economy moving forward, in order to have something to transport on those bridges?

Again, just as a reminder, in case you’ve forgotten: capital requirements for banks which allow banks to earn much higher risk-adjusted returns when lending to “the infallible” than when lending to “the risky” is pure bad heart attack provoking cholesterol.

PS. You refer to a bill drafted by John Delaney that would give US companies a tax break on any repatriated foreign earnings invested in US infrastructure… have you asked yourself in what assets those profits are currently invested and had to be liquidated in order to do that?