Knowingly or unwittingly, I believe and pray for the latter, current bank regulators are saboteurs of the economy

There has never ever been an economy that has grown strong and sturdy based on risk-aversion… they have always done so based sometimes on pure unabridged crazy risk-taking and other times with reasoned audacity… but that is what have kept them moving forward without stalling and falling.

Therefore when regulators imposed credit-risk weighted capital (equity) requirements for banks; which allow banks to earn much much higher risk adjusted returns on equity on what is ex ante officially perceived as absolutely safe, like “infallible sovereigns”, housing sector and members of the AAAristocracy, than on what is perceived as “risky”, like the medium and small businesses, entrepreneurs and start-ups… then they, de facto, sabotaged the economy.

So who wants to be known in the history as one of the saboteurs who brought down our economies?

For your information, secular stagnation, deflation, mediocre economy and other similar creatures out there, are direct descendants of risk aversion.