(Before It's News)
Bank regulators think they are doing great assigning a risk weight of 20% for what is AAA rated, and 150% for what is below BB-. I tell them they’re wrong, that what’s perceived as safe, contains much more danger than what is perceived as risky. I back it up with Voltaire’s “May God defend me from my friends, I can defend myself from my enemies” … and then the regulators avoid all contact with me
. It sure looks like a case of reaction to a disconfirmatory feedback.
But, at a level of a Basel Committee for Banking Supervision should its members not have to be able to handle rationally any disconfirmatory feedback? And what about those even higher up?
Sir, I ask, how can I convey such a belief to a President without risking causing him great disconfirmatory feedback discomfort?
PS. Sir since you have also mostly shut me up, could it be because I have gone over the level of disconfirmatory feedback you can handle? If so, how should we handle it? I ask because I have no wish to give up writing you my mind on so many things you might not agree with.