In effect, the legislature knee-capped small businesses and businesses in riskier parts of the Thai economy from getting financing. Those businesses are not going to get bank funding because the banks cannot be compensated for the risk of those loans. And that has to be even sillier than Thaksin's call to drop both deposit and lending rates.
David DeRosa, president of DeRosa Research & Trading, is also an adjunct finance professor at Yale School of Management and the author of ``In Defense of Free Capital Markets.'' The opinions expressed are his own.
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