Perhaps the greatest economic distortion of all times:
Basel Committee’s risk weighted bank capital/equity/shareholder’s skin-in-the-game requirements.
Have you, for decades, kept interested silence on that?
If so, what will your grandchildren say? 🤔😢
teawithft.blogspot.com/2009/10/please…

Two decades ago, Arnold Schwarzenegger, as Governor of California, expressed concern about how to balance his state’s budget, given the cost of sending someone to jail.
Now, seeing the violence on UCLA, I wonder how Gavin Newsom will face that problem.
x.com/PerKurowski/st…

In my life, I’ve walked all kind of main-streets, but never saw something risky I thought dangerous to our bank systems, only loads of what was perceived as safe.
But then came Basel Committee and opined the opposite.
For decades it has refused to listen.
teawithft.blogspot.com/2012/07/its-wh…

Should not those who know about finance and economics, know that regulators allow banks to leverage their equity differently with different assets? Something which could (does) dangerously distort the allocation of bank credit? 🤔🤔🤔
subprimeregulations.blogspot.com/2021/01/and-ac…

“This is the United States of America.”
Really?
With bank capital/equity requirements with decreed risk weights: 0% Federal Government – 100% We the People?
As if America's bureaucrats know better what to do with credit than e.g., its small businesses? 🤔
subprimeregulations.blogspot.com/2013/11/have-r…

“Since we PIGS know better what to do with credit, to make your banks safe, we give you our bank capital requirements with risk weights: PIGS 0% - you 100%”
If not a PIG but another animal on Orwell’s farm, how should you answer: “Thanks PIGS”?
Wake up! 😡
perkurowski.blogspot.com/2023/05/has-or…

We PIGS, since we know better what to do with credit, to make your banks safe, we give you our bank capital requirements with risk weights: PIGS 0% - You, other animals, 100%.
On Orwell’s farm, too few asked: “Was that our Founding Fathers intentions?” 😰
subprimeregulations.blogspot.com/2013/11/have-r…

We PIGS, since we know better what to do with credit, to make your banks safe, we give you our bank capital requirements with risk weights: PIGS 0% - You, other animals, 100%
And, on Orwell’s farm, Joseph Stiglitz said: Thanks! That's 'A Road to Freedom”
subprimeregulations.blogspot.com/2015/07/just-b…

Now, when information is just too voluminous and fast to handle, markets and authorities delegate the evaluation of it into the hands of much fewer players such as the credit rating agencies. Almost by definition, this introduces market systemic risks. 😡
subprimeregulations.blogspot.com/2003/03/my-com…

#Ericsson Financial Times
When risk adverse regulators impose a bank credit diet with too much carbs (public debt & residential mortgages) and too little proteins (loans to small businesses & entrepreneurs); they doom any economy to irrelevance & to end up as a museum
x.com/PerKurowski/st…

‘Trump is what neo­lib­er­al­ism pro­duces’ Joseph Stiglitz via Financial Times
The silence of a Nobel Prize winner on bank capital/equity requirements with decreed risk weights 0% governments – 100% citizens, empowers a Bureaucracy Autocracy and produces communism 😡
subprimeregulations.blogspot.com/2015/07/just-b…

When e.g., Nobel Prize winners & professors in economics, congressmen, politicians & technocrats, financial journalists & renowned gurus; they all ignore, or just don’t dare answer your questions, what choice does an ordinary citizen have but to ask AI? 🤔
x.com/PerKurowski/st…

#AI #OpenAI #ChatGPT
If a nation needs to take on more public debt in order to service its actual public debt, could it be deemed to be a zombie nation?
subprimeregulations.blogspot.com/2024/04/ai-ope…

“Are machines more cor­ri­gible than us?”
At least #AI #ChatGPT is much faster to admit mistakes than most (perhaps all) humans I've met.
'I apologize for any confusion in my previous response. You are correct, and I appreciate the opportunity to clarify.”
perkurowski.blogspot.com/2023/12/my-fri…

Bank capital requirements with decreed risk weights 0% government – 100% citizens.
The Road to Freedom?
Yes Joseph E. Stiglitz, for Pigs, and those aspiring to be Pigs (wolves) it is, but for other animals on Orwell’s farm (sheep), it’s The Road to Serfdom.
subprimeregulations.blogspot.com/2015/07/just-b…