Wednesday, February 24, 2010

Should we not have higher capital requirements for banks on what is perceived as less risky?

This “Not your average airport!” courtesy of “Learning from dogs” is a great example of that when something is risky everyone is more careful...

And so what we might really need is higher capital requirements on what is perceived as not risky and which therefore can induce carelessness. Just exactly the opposite of what the financial regulators have been and are doing.