The way governments are cooking it perhaps we should all run to Panama, for our children and grandchildren’s sake.

Look at what government’s are doing.

The regulators set risk weights for public debt at zero percent, which means that the banks need to hold the least capital when lending to those who sort of appoint them, talk about a conflict of interest… talk about lobbying.

The central banks, with their QEs, buy mostly sovereign debt.

And the central banks with their negative interest rates benefit mostly governments, since who in his sane mind would lend to his neighbor at a negative rate?

So really, what do they need our taxes for?

But those who will surely have to pay for all this madness, will be our children and grandchildren, and so perhaps we, responsible fathers and grandfathers, should all be running to Panama and similar places to see what we can safeguard for them.

Children and grandchildren, the truth about your fathers and grandfathers who are bank regulators

Your fathers, or grandfathers who are bank regulators, actually thought that if banks were allowed to leverage more their equity with exposures to those perceived as absolutely safe, than for those perceived as risky, we would not have any more bank crises. 

And this they believed even though all bank crises in the world have resulted from excessive exposures to those perceived as “The Infallible” and never ever because of excessive exposures to “The Risky”. 

Sorry kids, I wish I had not to say this, but they were really stupid. For your sake, I hope it is not something genetically.

PS. If you think that I am being too severe with your fathers and grandfathers who are bank regulators, then think of all the fathers and grandfathers who are not bank regulators, and who will suffer seeing their children and grandchildren not finding a job, only because of senselessly risk-adverse regulations.