By Hugo Dixon
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
Rahm Emanuel, President Barack Obama’s former chief of staff, popularized the motto that one shouldn’t waste a good crisis. But there is a severe risk that this is precisely what the world has been doing by being excessively soft in bailing out banks and countries since Lehman Brothers went bust in 2008.
Reuters Breakingviews is more used to commenting on other organisations’ behaviour than to having its own actions put under the microscope. But in the last week, as a result of retroactive disclaimers we made to a series of articles in order to clarify potential conflicts of interest, we have rightly been under scrutiny.
Hot money is the bugbear of policy makers in many developing economies. Just ask Brazil or, indeed, Thailand, which has just imposed a 15 percent withholding tax on interest and capital gains earned by foreign investors on Thai bonds.