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This is what regulation is for.
by joncooper 12y ago
This is what regulation is for.
- mschuster91 12y agoRegulation? Are you serious? Just look at the European financial markets. The ECB pumps billions of euros into the banks in order to incentivize credit flow to businesses. What do the banks do? Computers tell them that providing credit to businesses and consumers is too risky, banks listen to computers and banks invest in stuff with more risk than playing poker in a casino. Regulation does not work in finance - because banks continue to evade regulation as good as they can.
- toomuchtodo 12y agoThis is why the ECB just went negative on interest rates; to make it more costly to hold onto the funds than it is to lend it out.
- mschuster91 12y agoSo what, the cash will still flow where the return chances are higher. And consumer/business credit is far, far below the return rates of speculation and derivatives.