Sunday, March 31, 2013

US, it is not easy to remain “the land of the brave”, with castrated banks singing in falsetto

I came late to DAVID A. STOCKMAN´s Sundown in America, in the New York Times, “State-Wrecked: The Corruption of Capitalism in America” March 30, comments were closed. 

But this is what I would have commented, again, for the umpteenth time. 

America, be careful you do not turn into “the land of the pusillanimous”…since that is where you are heading with current bank regulations.

The day when bank regulators came up with, or accepted, the idea that banks could hold less capital against what was perceived as “absolutely not risky”, than against what was perceived as “risky”, even though those perceptions were already being cleared for by means of interest rates, size of exposures and other contractual terms, that day they castrated the banks. 

And friends, it is not easy to remain “the land of the brave” with your banks singing in falsetto.