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Blimey, here\’s a turn up for the books!

Evidence demonstrates that companies who engage in more risky innovation are being penalised by banks with higher interest rates than those being offered to less innovative companies.

You mean that riskier activities are charged higher interest rates?

Blimey, what bastards the banks are, eh?

Any growth policy needs to include new incentives for motivating banks to support these firms, perhaps by subsidising the difference in the rate offered to innovative versus non-innovative companies.

So we should equalise the interest rate between that brave attempt to extract cucumbers from moonlight with the safe and boring business of baking Britain\’s bread?

Umm, isn\’t that why the entire financial system just went tits up, because risk was being mispriced?

Credit ratings also need to be re-examined if we are to ensure that they better reflect the high risk taken on by companies that invest in the long term.

Erm, what? The credit rating is supposed to (and yes, we know, it\’s not been perfect at this) reflect the risk of repayment. So, we\’re now going to say that those at higher risk of not repaying, because they\’re taking those innovative risks, should have the same credit ratings as those who don\’t take those higher risks and so are more likely to repay?

Jeebus, where is this woman from?

Mariana Mazzucato is professor in the Economics of Innovation at The Open University; Economics director of the ESRC Centre for Social and Economic Research on Innovation in Genomics (Innogen) and co-ordinator of an EC funded project on Finance, Innovation and Growth (FINNOV)

We\’re fucked, aren\’t we?

3 thoughts on “Blimey, here\’s a turn up for the books!”

  1. Well she has all the right credentials, professor, Open Uni, EUlinkage, what did you expect…..common sense!

  2. Pingback: Una recopilación de otras críticas a Mazzucato | Níntil

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