Quote Originally Posted by Aaron View Post
Admittedly I don't understand how it all works but my basic understanding is that banks will need to have more equity as a percentage of total assets. This is to reduce risk to depositors who have no govt guarantee or depositors insurance. Doesn't sound like a bad idea to me. But I guess anything that might reduce the increase in debt and asset prices is not a good idea according to economists and banks who are well known for their responsible lending.
I agree with you Aaron

Hypothetical question for anybody interested: What would you say if someone offered you an investment with a promised pre-tax return of close to say 20% pa over many years?.

You mighty say: “How much can I buy?” or like most sensible people: “What is the catch?”

Think about it