Thick as a brick

Never has there been a financial or bank crisis that has originated from too much investments or lending to what was perceived as being risky… capitals and bankers are much too coward for that.

All financial or bank crisis have always originated from lending or investing too much in what was wrongly perceived as not risky… even Dutch tulips would certainly have had an AAA rating.

So when therefore we see how regulators were fooled into giving bankers special incentives for investing or lending to what is perceived as not being risky, by means of allowing in those circumstances the banks to have specially low capital requirements, we can only conclude that the regulators in the Basel Committee are thick as a brick… just like we are when we allow those same regulators to keep on regulating.

If the handicap officials on a racetrack took of the weights from the best horses and placed these on the weakest… would they be allowed to remain as handicap officials? I don’t think so!