Simon Johnson “But unless and until the leaders take any steps to address our pressing financial sector vulnerabilities, the summit is not worth its carbon footprint.”

One has decoupled from the other – finance from production – and nether the twain shall meet. That’s right, nether, the G20 is an anachronism not worth its energy footprint.

Mr Johnson has suggested previously an administrative coup of the financiers … to no effect. Not one drop of new oil can they conjure from their various swindles, they can only tax and tax some more against a declining base of (questionably) useful industry.

Medium term would be usefully addressed if G20 would work together to insure the basic survival tools for their unwary populations. They won’t and that is the end of their credibility.

It really makes it clear how the global leadership thinks of the people.

I’m befuddled by how so many supposedly smart people have acted like chronic drunk drivers. First the car almost goes over the cliff. It’s only because of luck, quick (though belated) and massive policy response did they keep the car from going over (granted we still missed the road). As with any chronic drunk we’re in denial of how bad our problem is.

I am not at all sure, because under the do no harm principle we might be better if they do nothing.

The most urgent problem in our financial sector at this moment, a problem that is not even discussed, is that with all the credit risk downgrading going on, those operations that previously only required 1.6% in capital are now starting to require 8% in capital and with that they are crowding out all the previous ordinary more growth related loans that as they were perceived as more risky from the very beginning required the banks to hold 8% in equity. You can almost hear the sucking sound.

And so if we on top of this let lose those who want to cast themselves as puritan angel avengers, like Simon Johnson, screaming for blood and more capital cross the board, our small entrepreneurs would be squeezed out completely and only the biggest, who also have more access to the bailouts would survive. That is why the big always love regulators… like Simon Johnson. Tell me a regulator that truly works in favor of the small, short, medium or long term?