Finance for Development

The world is in a crisis detonated by investments in safe assets, mortgages and houses; in a safe country, the USA; and in safe instruments, rated AAA… and still the experts, Nobel Prize winners included, have the galls to call it excessive risk-taking, and not the excessive misguided risk-aversion it really is. Given that risk is the oxygen of any development... God save developing countries from these developing experts!

Tuesday, May 16, 2006

Unsustainable debt

"There cannot be a road more conducive to debt turning unsustainable, than to award credits just because they are sustainable."

Posted by Per Kurowski at 3:59 AM
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Inequality

Credit risk weighted capital requirements for banks that kill opportunities for the “risky”, are fundamental, man-made, artificial drivers of growing inequality.

Let´s get rid of this last crop of subprime bank regulators.

Perhaps more than a billion people around the world risk each day not being able to eat; and the world is confronting some extremely serious environmental challenges; and decent work opportunities are scarcer by the day around the world; and here we have some bank regulators who all they worry about, is whether our financial systems are stable… to such an extent that they have made them extremely unstable.

The Basel Committee castrated our banks

The Basel Committee by taxing what is perceived as higher risks and relatively subsidizing the lower effectively helps to increase the world´s Gini coefficient.


http://bit.ly/3kTfUR

Let´s neutralize the wimps!

If we are to keep on using Basel methodology for establishing the minimum capital requirements for banks, beside better risk weights, we must demand it also uses “societal purpose” weights.

Partly closed for comments

For lack of time I might not manage or answer (or censor) the comments here but, if you want me to comment urgently on something somewhere else, invite me and I might show up: perkurowski@gmail.com

My Voice and Noise links

  • Tea with FT
  • On subprime banking regulations
  • Me and the Basel Committee
  • A view from the radical middle
  • My "Voice and Noise" 2006
  • On unsustainable debt sustainability
  • The Global Coallition of Oil-Cursed Citizens
  • The de-facto American Union
  • On climate change and the environment
  • On the Caribbean & Tourism

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About Me

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Per Kurowski
We are suffering from more and more answers than questions begging for them, and so I work on the latter. Read it all in my one and only book!"Voice and Noise" Pssst... so few have read this book so it is slowly turning into a collector item (I do not say a "cult"... yet) and so you might benefit from getting your very own copy now.
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