What we first must do is to cut off the currently too visible hand!
Here we are, standing in front of the ruins of a horrendous financial crisis…
provoked by the most outrageous market intervention ever…
which occurred when bank regulators thinking themselves so brilliant…
concocted capital requirements for banks based on the risk of default as perceived by some few credit rating agencies…
like only 1.6 percent capital, which means allowing a 62.5 to 1 leverage, for anything related to an AAA rating…
and thereby rewarded additionally what was already rewarded by the traditionally coward capital markets….
to such an extent that the financial system stampeded toward safe-havens and turned these into dangerously overcrowded traps…
and now some have the gall to tell us it is “Time for a Visible Hand”
NO! What we first must do is to cut off the current too visible hand
provoked by the most outrageous market intervention ever…
which occurred when bank regulators thinking themselves so brilliant…
concocted capital requirements for banks based on the risk of default as perceived by some few credit rating agencies…
like only 1.6 percent capital, which means allowing a 62.5 to 1 leverage, for anything related to an AAA rating…
and thereby rewarded additionally what was already rewarded by the traditionally coward capital markets….
to such an extent that the financial system stampeded toward safe-havens and turned these into dangerously overcrowded traps…
and now some have the gall to tell us it is “Time for a Visible Hand”
NO! What we first must do is to cut off the current too visible hand
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