Wednesday, October 10, 2012

What Imperial Examination did the Basel Committee Mandarins have to take to be allowed to regulate our banks?

Unfortunately they did not have to do that, and that is why we ended up with these stupid regulations, which require the banks to hold more capital when their assets are perceived as "The Risky" while allowing them to hold immensely less capital when their assets were perceived as belonging to "The Infallible", and all this even though only assets perceived as "The Infallible" have always created a major bank crisis.