Letters to the editor - 18/09 - Banking reform, Best of Twitter

Banking reform

[Re: We should replace Fed monetary superheroes with rules-based policy, yesterday]

A bigger concern is that central banks themselves have been given superhero status. There is now a belief that they can solve any economic woes, and this is then transmitted to whoever is in charge. Central banks should do less, and leave politicians to get on with real economic reforms.

Name withheld

[Re: Lehman crisis should have changed the world more than it did, Monday]

My concern is that we have let this crisis go to waste by not learning from the mistakes made. The government wants to expand credit, but without suitable credit discipline. The markets are still using dubious methods to price and evaluate credit risk. The quants are using historic data – just as actuaries do – but neglect that this credit data came about as a result of underlying economics. We need to look not just at the symptoms, but also at the causes.

Kumar Devadasan

We have seen improvements to the financial sector since Lehman, with the idea of a bail-in providing a new way of resolving failing institutions.

Roisin Marshall

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BEST OF TWITTER
Inflation data: good news for Mark Carney, little comfort for anyone else.
@World_First

Mark Carney is between a rock and a hard place with UK data at the moment.
@Joe_Trading

Sensible way to start Lloyds sale. But we must not pretend £10bn write down of Hbos loans is irrelevant!
@truemagic68

Just because house prices are “only” back to 2007 levels, does not mean we are not in a bubble.
@rosaltmann