tag:blogger.com,1999:blog-7707793736288462113.post9203113167754642608..comments2024-03-15T03:27:49.084-04:00Comments on Bubbles and Busts: The New Arthurian - Andrew Haldane: Financial arms racesAnonymoushttp://www.blogger.com/profile/00720722626969395929noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-7707793736288462113.post-60445633442853738752012-05-14T22:37:35.371-04:002012-05-14T22:37:35.371-04:00Your point about the number of policies dedicated ...Your point about the number of policies dedicated to encouraging private borrowing is extremely important. The banks can only lend as much as individuals are willing to borrow, so the relationship requires both parties. As I see it, the current efforts to stimulate growth are focusing on reducing mortgage, auto and student loan rates...basically the opposite of what is needed. <br /><br />The road may be long but I remain hopeful yourself, Haldane and the cadre of others that share these views will eventually garner enough support to push policymakers in the right direction.Anonymoushttps://www.blogger.com/profile/00720722626969395929noreply@blogger.comtag:blogger.com,1999:blog-7707793736288462113.post-25265764718775548312012-05-13T18:56:31.772-04:002012-05-13T18:56:31.772-04:00Sweet! Thanks for the link, Woj.
Haldane is obvio...Sweet! Thanks for the link, Woj.<br /><br />Haldane is obviously a knowledgeable guy. That lets him get into all kinds of details. But that puts a guy like me "in the weeds" where it is hard to see my way out. <br /><br />Keep an eye on the big picture. We have too much debt? Okay, we have too much debt. <i>Every</i> solution must move us toward a solution to <i>that</i> problem.<br /><br />Haldane recommends constraints on bank leverage. I think that means: <b>Put limits on how much banks can borrow.</b> I don't know if that would help, but let's say it would.<br /><br />Okay. To paraphrase a Star Trek title: Who limits the limiters?<br /><br />Policymakers are thoughtless: <i>Oh, the banks have too much debt? We'll pass a law against that!</i> But the trouble is that 9 out of 10 existing policies are designed to get people and business and banks to borrow *MORE* ... If we didn't have those nine, maybe we wouldn't need the one that hopes to contradict them.<br /><br />Rather than creating obstacles to the creation of debt, maybe we should start by <b>removing</b> a few of the incentives for the creation of debt. And maybe we should create some incentives that help people pay down debt faster.The Arthurianhttps://www.blogger.com/profile/16501331051089400601noreply@blogger.com