QUESTION: This report from the BIS merely states what you wrote on the private blog almost a month ago about JPM. They are not pointing out the real issues that you have laid out in the report. Are they trying to create disinformation since you point out that the issue with JPM was because of their rules under Basel III?
BTW, thank you for explaining the real issues unfolding.
ANSWER: It does seem a bit disingenuous to point out that banks are unwilling to lend and prefer Treasuries without explaining fully what is behind that decision. Nevertheless, they cannot come out and report the truth when they are also in the mix. As I said before, that is not where it began. There are three phases to this. We are only in Phase II. The Mother of all Financial Crises has yet to come.