The Fed's Proposed 'Buffer Tool' Is A Laugh Line Wrapped In A Bad Joke

Which speaks to the other basic point about presumed “capital buffers.” Credit is global, and the fact that it’s global is quite the understatement. Explicit in the Fed’s conceit is that its economists, having detected an economy in the process of “overheating,” could take some steam out of said economy through increased capital requirements for banks.





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