4 Responses

  1. Gary M. Olson says:

    Most the ideas banks and business suggest have an element of Red Herring contained within so you know that they are giving you boilerplate rhetoric to cover the simple business creed: maximize profits is the first and only self-imposed rule of business! Taken to excess is wherein the problem lays. This is why we need regulations to protect the average consumer and the economic system from the ever emerging bubbles!

  2. Vangel says:

    Of course they should have a lot more capital. Most of the ‘banks’ that I see look a lot more like hedge funds and take huge risks because their funding costs are artificially low. Let the markets work and the issues will take care of themselves. But to do that you have to allow competition for the Fed and that will not happen until there is a serious crisis.

  3. juandos says:

    Should banks hold a lot more equity capital?“…

    Define a ‘lot more‘?

    50% of their outstanding loans?

    More?

    Less?

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