INSUBCONTINENT EXCLUSIVE:
By Mihir SharmaAs bad as the 2008 crisis was, the cure could be worse
After Lehman Brothers fell and the United States government stepped in to rescue finance from its worst instincts, many demanded that
Finance is indeed more boring than it was earlier
have become the basis for much macro-prudential regulation of banks worldwide
associated with project finance prohibitively expensive
Boring banking means that savers in the West are forced to endure much lower returns on their capital than otherwise.
Sophisticated
private-equity and hedge-fund investors may be able to find their way around some regulations, and have access to the kinds of assets that
climate change and anxious young populations face great pressure to invest in new, green infrastructure
If you want to know why the Belt and Road Initiative is upending geopolitics across the world, look no further than the botched response to
the crisis of 2008.
Had it not been for the clampdown on risk-taking after the crisis, global finance would have gone out and done its real
that depends only on central bank action or the occasional unicorn for its returns
But a world without competent finance, and thus growth, is worse
(This column does not necessarily reflect the opinion of economictimes.com, Bloomberg and its owners)
