Paul Krugman there's huge Excel type data mistake that is bringing the Western economies down into deep depression
The regulators of the Basel Committee for Banking Supervision, when designing their risk weighted capital requirements for banks made the outrageous mistake of looking at the specific risks of banks assets, and not at the risk of those assets to the banks, or to the bank system.
That makes banks dangerously lend too much to what is perceived safe and for the economy equally dangerous too little to what is perceived as risky, like SMEs and entrepreneurs.
The Western world has thrived on risk-taking not risk aversion.