Interesting, albeit lengthy, treatise by financier and philanthropist, George Soros, on what must be done to "re-set" the financial system.
Here is an excerpt on the relationship between monetary supply and underwriting conditions for access.
It always surprises me how few people understand that supply and liquidity aren't one and the same:
"Credit creation and contraction are reflexive and tend to occur in initially self-reinforcing but eventually self-defeating boom-bust sequences.
Therefore it is not enough to regulate the money supply; it is also necessary to regulate credit conditions.
This involves reactivating policy tools that have fallen into disuse: variable margin and minimum capital requirements, and central bank directives on bank lending to particular sectors."
Read the whole piece. It is pretty granular and actionable.
