Comments on: Basel spatwatch, EU vs US edition http://blogs.reuters.com/felix-salmon/2011/06/02/basel-spatwatch-eu-vs-us-edition/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: klhoughton http://blogs.reuters.com/felix-salmon/2011/06/02/basel-spatwatch-eu-vs-us-edition/comment-page-1/#comment-27265 Thu, 02 Jun 2011 16:03:26 +0000 http://blogs.reuters.com/felix-salmon/?p=8512#comment-27265 I’m still getting calls for Basel II implementations. Basel III will be fully implemented in the US about the time Felix is of retirement age. Maybe.

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By: KenG_CA http://blogs.reuters.com/felix-salmon/2011/06/02/basel-spatwatch-eu-vs-us-edition/comment-page-1/#comment-27263 Thu, 02 Jun 2011 15:02:04 +0000 http://blogs.reuters.com/felix-salmon/?p=8512#comment-27263 “unemployment is proving stubbornly immune to monetary policy”

Maybe now people (especially central bankers) will understand that increasing the supply of money does not always lead to job growth. Just making more money available does not mean people will invest it. If you don’t have anything worth investing in, it doesn’t matter if the interest rate is zero, you’re still not going to risk it.

There is enough capital floating around the world to finance growth. What is needed is a reason for that capital to be deployed, instead of sitting under virtual mattresses earning near 0%. Companies have returned to profitability after adjusting their businesses for the post-2008 reality, and they are hoarding their profits. The tax system must be changed to penalize hoarding and reward re-investment. This is not the domain of central bankers, but rather (unfortunately) politicians.

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