At a minimum, proprietary trading ought to be financed by banks own capital.

Banks would scale down their balance sheets in proportion to their reported equity losses and exacerbate the credit crunch from which the world is already suffering today.

Rather, the banking system is at the brink of insolvency, with a permanent loss in equity capital.

The euro, meanwhile, suffered its own crisis.

They put the Americans, deluded by grandeur, in their place.

They will continue to deprive the banking system of its equity capital, with little chance of it being recouped in the near future.

The lack of equity resulted largely from the concept of limited liability, which provided an incentive for excessive leveraging.

Corporations, moreover, are holding the largest amounts of cash, relative to assets and net worth, ever recorded.

The mutual interaction between the incentive to minimize equity capital and the incentive to gamble in order to exploit the upside risks caused America s crisis.

For example, the derivative markets should create an environment that encourages insurers to develop home equity insurance, which insures homeowners not just against a bust but also against drops in the market value of the home.

I am convinced that we need an overall cap on leverage on banks balance sheets, regardless of risk asset weightings or value at risk measurements. The fact that equity to asset ratios are currently averaging out at about 3 tells you everything that you need to know about the inadequacy of the current pro cyclical capital requirement framework.

The fact that equity to asset ratios are currently averaging out at about 3 tells you everything that you need to know about the inadequacy of the current pro cyclical capital requirement framework.

Now only a few sectors suffer from excess capital accumulation.

Some may scoff that this approach is impossible at the global level, because all politics are local.

Yet today, all politicians depend on global solutions for their own political survival.

He's a victim of his own success.

She's a victim of her own success.

Tom killed his own father.

Tom murdered his own father.

Tom is afraid of his own son.

Mary is afraid of her own son.

He killed his own father.

She killed her own father.

He murdered his own father.

She murdered her own father.

Tom betrayed his own brother.

He balked at the suggestion that he give ten percent of his income to charity.

Regulators have proposed steep hikes a Bank of England study, for example, suggested a more than three fold increase.

Lack of equity capital, in turn, made risk averse shareholders hire gamblers to manage their limited liability investment companies.

As a result, commercial providers of debt or equity cannot get the high returns and quick exits that they seek.

UNOPS provides start up funds from its administrative budget only in order to leverage the first one or two projects.

Thereafter, the earnings from these projects serve to leverage additional projects and to replenish the administrative budget.

It is extremely difficult to estimate capital flight, both because the data are insufficient and because it is tough to distinguish capital flight from normal diversification.

Why? Because in compassion, when we feel with the other, we dethrone ourselves from the center of our world and we put another person there. And once we get rid of ego, then we're ready to see the Divine.

In some ways, the country simply ignored their past and moved forward.

You lose your sense of self.

Where is our dignity?

You should be ashamed of your ignorance.

They elect their own chief.

The moon doesn't have light of its own.

Tom doesn't own a car.

This company is a victim of its own success.

Capitals of Capital

Capital flight

One post in the middle of August (when the Bank s top cats were certainly away, allowing free rein to the mice) pointed to some of the weaknesses in banks internal capital models, which are at the heart of the Basel 3 capital requirements regime.