By Thomas Palley
There is widespread recognition that the financial crisis which triggered the Great Recession was significantly due to financial excess, particularly in real estate lending. Now, policymakers are looking to reform the financial system in hope of avoiding future crises. But like the drunk who looks for his lost keys under the lamppost because that is where the light is, policymakers remain fixated on capital standards because that is what is already in place. Read more
From the FT:
Not all bubbles present a risk to the economy - Frederic Mishkin
European banks strive to delay capital reforms – Patrick Jenkins
Banks face high costs as £4,000bn short-term debt refinancing looms – Francesco Guerrera & Nicole Bullock
From elsewhere:
Counting the jobs produced by the stimulus - Gary Burtless, Brookings
Asia’s corporate saving mystery – iMFdirect
Trading this crisis for the next – Naked Capitalism Read more
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