Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
As Martin Wolf notes, banks in fact manage to get even more highly leveraged than other players ever get to be - even after the excesses of the recent debt bubble.

Capital requirements would indeed be a real way to limit that risk, and reduce overall systemic risk in a real way.

(And a note to Chris - banks need not create money to be so leveraged: they just borrow it on the markets. Being at the intersection of investors and borrowers, they have access to huge pools of existing capital and have no need to create any more).

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Wed Nov 28th, 2007 at 06:56:18 AM EST

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