Hawk-eyed!
Footnote on the current interest rate discussion in the US and elsewhere, drafted on Sept. 3, 2007
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I suppose, we all agree that the faltering of the asset backed commercial paper market, that we are witnessing
these days is the consequence of a lack of trust in the (inter-banking) market place. This lack of trust, however,
which is causing the current problems is not the result of an unforeseeable technical problem in the mathematical
management of funds nor is it a concoction of metaphysical powers that is creating the glitch. No, it is our own
poor risk management which has caused the current mess.- Hence, it would be wrong to ask Central Banks that
they should remedy the worst effects of our own miscalculations. Instead, we will have to find the trust in and out of
ourselves to overcome the current situation. For too much would we else have ducked our own responsibility that
we could now still hope to adequately manage it.
Footnote on the current interest rate discussion in the US and elsewhere, drafted on Sept. 3, 2007
-------------------------------------------------------------------------------------------------------------------------------------------
I suppose, we all agree that the faltering of the asset backed commercial paper market, that we are witnessing
these days is the consequence of a lack of trust in the (inter-banking) market place. This lack of trust, however,
which is causing the current problems is not the result of an unforeseeable technical problem in the mathematical
management of funds nor is it a concoction of metaphysical powers that is creating the glitch. No, it is our own
poor risk management which has caused the current mess.- Hence, it would be wrong to ask Central Banks that
they should remedy the worst effects of our own miscalculations. Instead, we will have to find the trust in and out of
ourselves to overcome the current situation. For too much would we else have ducked our own responsibility that
we could now still hope to adequately manage it.
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