“Stay indoors where it is safe children, outside is much too risky” Nanny Basel Committee

Sir, Professor Jeff Frank refers to “driving with one foot on the throttle and the other on the brake” when explaining how QE “hasn’t done much for the real economy but has increased stock market prices and the wealth of the 1 per cent”, “‘Bold move’ will be to withdraw the money later” January 27.

I fully agree with Professor Frank’s analysis and conclusions. I would clarify though that “the brake” he refers to, is the “risk-weighed equity requirements for banks”, and which makes it impossible for equity strapped banks to reach out to the real economy.

Think of our banks as children instructed by their nannies to stay indoors all time, because out there it is much too risky.

Again, for the umpteenth time, the silly risk aversion of our bank nannies is bringing our economies down.