Friday, November 19, 2004

Bank regulators are favoring too much public borrowings

The Public Debt Balloon keeps on inflating and flying Up, Up and Away, ever since the Basel Committee cut its moorings, with their Sovereign 0% risk weight

Here part of my letter that was published today in the Financial Times:

“We wonder how many Basel propositions it will take before they start realizing the damage they are doing by favoring so much bank lending to the public sector. In some developing countries, access to credit for the private sector is all but gone, and the banks are up to the hilt in public credits.”