the for profit banksters have one strategic objective at the highest level :
reduce equity to as thin a green line as possible
do you imagine reforming system regulators will block this
by ever more elaborately calculate risk weighting ?
what is risk .. ..after all
unpredictable ?
"Looking at banks with over $100 billion in assets at the end of 2006,
risk-based capital ratios
fail to predict which would fail when the crisis hit"
kwak
why?
"; Basel II allowed banks to use internal risk management models for calculating their risk-weighted assets and capital, capital regulation is now performed by models that potentially include millions of parameters that must be estimated.... But these parameters must be estimated using relatively short historical samples—drawn from a historical period that may or may not be representative of the future.... we collide with a fact of statistics: when you have a limited amount of sample data,
simple models have greater predictive accuracy than complex models"
kwak
the phenomenology of risk expectations
discovered or manufactured ?
a fully socialized credit system removes this game
risk is subsumed by a mandated universal risk premium system
want an outside assessment ?
the pool assignments could be shadowed by traded speculators paper
default/delinquency bets eh ?
