Regulations are systemic risks.

Yes Sir you are absolutely right when in “Regulation Time”, May 26, you say “This crisis was born of gambles with systemic stability, not of weak investor protection”. In fact it was by trying to overprotect banks and investors from risks, by means of minimum capital requirements for banks that rewarded risk adverseness and the naming of some few credit rating agencies as the world’s official risk surveyors, that the regulators gambled away the systemic stability.

In order for current regulations to stand a chance of being corrected the first thing that has to happen, is for the regulators to acknowledge that regulations are by themselves a prime source of systemic risks.