Statul – ca manipulator suprem al pietelor financiare … sau motivul alocarii gresite a resurselor la nivel global

Posted: April 6, 2013 in Burse, Diverse, Politica si politici, Stock Track
Tags: , , , , , , ,

The financial crisis served to differentiate two types of investments–the ones that get bailed out and the ones that don’t. Investors naturally have a preference for the former. That means big banks can get cheap credit. And what does Basel tell them they can do with their cheap credit? Buy government bonds.

So what we have had over the past ten years is a massive exercise in credit allocation by the world’s bank regulators. They offer explicit and implicit guarantees to banks that invest in assets officially designated as low risk, and now they are shocked, shocked to find capital pouring into exactly those assets.

De citit si : Ce vrăji (mai) face statul banilor noştri?

De completat lectura cu: O dispută mai veche: este Statul un “manipulator” al pieţelor? Un comentariu nou: Aurelian Dochia

source: The Basel Did It

Posted on April 5, 2013

Ken Rogoff has described a mystery.

As policymakers and investors continue to fret over the risks posed by today’s ultra-low global interest rates, academic economists continue to debate the underlying causes. By now, everyone accepts some version of US Federal Reserve Chairman Ben Bernanke’s statement in 2005 that a “global savings glut” is at the root of the problem. But economists disagree on why we have the glut, how long it will last, and, most fundamentally, on whether it is a good thing.

Brad DeLong suggests that this is

a catastrophic market failure in the inability of financial markets to properly mobilize the risk-bearing capacities of society as a whole

So who done it? My nominee is Basel. The Basel capital accords blessed certain assets as “low risk.” This fueled growth of Freddie and Fannie. Then, in 2000, private securities with AAA ratings were added to the list, fueling a boom there. We know how that turned out.

The financial crisis served to differentiate two types of investments–the ones that get bailed out and the ones that don’t. Investors naturally have a preference for the former. That means big banks can get cheap credit. And what does Basel tell them they can do with their cheap credit? Buy government bonds.

So what we have had over the past ten years is a massive exercise in credit allocation by the world’s bank regulators. They offer explicit and implicit guarantees to banks that invest in assets officially designated as low risk, and now they are shocked, shocked to find capital pouring into exactly those assets.

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