August 24, 2016
August 23, 2016
BoE, if you really believe jobs come first, why not capital requirements for banks based on job creation ratings?
August 22, 2016
Ms Merkel, Mr Renzi and Mr Hollande. Do you want to tackle growth and youth issues? Read the memo or give me a call.
High interests do not solve any retirement problems, if there is no real economic growth to pay for these
August 19, 2016
Even sophisticated up-in-the-fronters can fall victims to populists, like those dressed up as bank regulators.
Sir, John Lloyd correctly writes that “rising inequality, wage stagnation and workplace insecurity merge with concern about fragmenting communities, exacerbated by fear of unregulated immigration and terrorism…produces a popular energy” that can be captured by populists. “For left-behinders, populists paint a picture of a better future” August 17.
But not only left-behinders can be victims of cheap populism, those up-in-the-front too, and populism can come in all shapes of form, including camouflaged as bank regulations.
Like that populism imbedded in: “If banks avoid risks, this will keep them from failing, and we will all prosper. So more risk more capital - less risk less capital”
And what is amazing is to see the how many famed journalists, Nobel Prize winners, academicians and politicians, fell for it, ignoring that what is risky is already made safer by being perceived as risky, but made even riskier if perceived as safe.
And what is even more amazing is how, even after a crisis brought on by excessive bank exposures against too little capital to what was perceived as safe; and an economy that is stagnating and not showing increased productivity, they still can’t open their eyes to the distortions in the allocation of bank credit to the real economy caused by that grievous piece of bank regulation.
Or is it like John Kenneth Galbraith said: “If one is pretending to knowledge one does not have, one cannot ask for explanations to support possible objections.” “Money: Whence it came where it went” 1975.
In Venezuela there’s much human suffering because of lack of food and medicines; but petrol is 1 US$ CENT PER LITER!
August 18, 2016
Regulators divided private sector in two, Safe and Risky. And guess who is losing out more than usual? All of us!
August 17, 2016
Are you shocked seeing the Financial Times report on banks not doing anything but storing cash, and want to help?
August 16, 2016
There’s a distortion of the allocation of bank credit to the economy that does not want to be named, but must be named.
August 15, 2016
To generate societal and economic resilience, risks need to be intelligently faced and not just brutishly avoided.
August 13, 2016
If one incorrectly accuses bank regulators of being totally inept, in public, one would think they would answer
Do you think Trump wants to lose big? To risk hearing “You’re fired!”? What if he first negotiates with GOP and then quits?
August 12, 2016
Only by getting rid of all regulatory subsidies to negative rate yielding debt, would we have free-market real rates
Statism, by way of bank regulations, marches on! Thou shall not hold anything but the Infallible Sovereign’s debt
Italy has no chance of solving its bank and economy problems, if it does not understand the regulatory distortions
August 10, 2016
Should we not also be concerned with the behaviourism of the Financial Times? I mean FT having such a delicate ego?
August 08, 2016
If anyone in FT is living up to FT’s motto of “Without fear and without favour” that’s Lucy Kellaway
“Progressives” can promote fairness and growth by stopping bank regulator’s despicable discrimination against “risky”
August 07, 2016
If only regulators had had one of those “what-to-do” algorithms Tim Harford mentions before regulating banks.
August 06, 2016
We need banks that profit by taking reasoned risks; and that have capital to cover for a good chunk of the unexpected.
August 05, 2016
Money from heaven can be real or fake and it can be dropped by trusted helicopter pilots or as Universal Basic Income
At what point do negative rates on government debt become absolutely incompatible with its zero % risk weight?
August 04, 2016
Bank regulators should not discriminate in favor of the “safer” past and present, and against the “riskier” future.
August 03, 2016
Loony technocrats told countries: “In order for you to develop and grow, your banks must avoid taking risks”
August 02, 2016
FT, when banks have less capital against assets, how can you be sure their capital positions have strengthened?
QE-forever cycle of fiscal stimulus, with current bank regulations, can only generate a dangerously obese economy.
August 01, 2016
FT, how can you with a straight face hold that bank capital buffers in EU are more ample than they were five years ago?
July 30, 2016
When raising carbon taxes, let’s try to keep the war against climate-change and the redistribution profiteers at bay
We do not believe that the Venezuelan military can contemplate sending their compatriots to the starvation ovens.
July 29, 2016
Banks, to get out of their dead-end street, must make a convincing case they can prosper holding much more capital.
July 28, 2016
Any central banker that distorts, just as he likes, the allocation of bank credit to the real economy, is not to be trusted
Basel risk-weights: Sovereign 0% - We The People 100%. How on earth did we fall into that idiotic statist trap?
July 27, 2016
Just you wait till the young discover what the Basel Committee for Banking Supervision has been doing to their future
July 26, 2016
If banks want to keep the society’s support, they must again become efficient allocators of credit to the real economy.