I’ve glanced at the paper so far. It looks to be a way forward for a severely compromised global banking system. Shadow banking is a cancer on the body politic, & must be cut out or reigned in. The turmoil following @budget2022 involved unprecedented central bank intervention.
#PostTruthEconomics as practised by Trump & Truss, clearly provokes the financial sector, with @CentralBanking_ picking up the pieces. But the risks of destabilising the system are high and rising as interest rates climb. Reform is urgent.
Reform of the global banking system is an urgent task for the @BIS_org before there is another Lehman or #GreatFinancialCrisis. The crypto collapse is ongoing, oil&gas prices are gyrating, currency/bond markets are only just being managed.
If these markets, + equity markets, start to oscillate in tandem, & the oscillations cannot be broken by concerted central bank interventions, the system seems likely to collapse, like a wobbly bridge under too much strain. An outcome to be avoided *without* bailing out bankers.
Hopefully the lessons from the 2007-2010 crisis have been learned. Orderly bankruptcies are an essential component for national banking systems to work. International banking concerns national banks collapses, which are very different, & depend on national sovereignty & culture.
As seen over the years 2007-2010, financial crises merge into economic crises with timescales being different in different markets, so there may be plenty of opportunities & time for reform. But we can’t be sure. #BankingReform is urgent.
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