Brian Gaynor's value as an economic commentator is limited by his apparent ignorance of some economic fundamentals.
One such was displayed this morning. The Reserve Bank, he told radio programmes this morning, should act as a lender of last resort to troubled finance houses.
This is utterly absurd.
Gaynor's thinking is shockingly short term. Not only is it not the taxpayer's job to bail out poorly managed finance houses, not only would it all-too frequently throw good money after bad, but in the final analysis nothing would be more certain of increasing the number of risky lenders in the long term than the guarantee given on a plate to them that the backstop to their riskier activities is the power of the government to make the taxpayer their involuntary guarantor.
Having the Reserve Bank as a lender of last resort would reward the riskier lenders, and invite all lenders to take equal risks to keep their place in the market.
The proposal is absurd.
The best solution to the existence of the riskier lenders is to get them out of the market forthwith, so they're unable to consume any more of their investors' wealth. This is the "creative destruction" about which intelligent economists have spent so much time trying to educate their less informed colleagues.
I recommend some study of the topic to Mr Gaynor and his colleagues.