Bank Runs, Sunspots and the Information Matrix
A couple of readers asked me if I was familiar with and what I thought about Douglas Diamond and Philip Dybvig’s Bank... Read More
Great Liquidity Crisis Next Phase of Current Crisis
JP Morgan has already named the next phase of our current financial crisis. They call it the Great Liquidity Crisis. Their trigger... Read More
The Myth of Central Bank Infallibility
Since the idea of macro-prudential regulation was first raised, I have pointed out there is no reason to expect it to work.... Read More
Transparency Continues to be Missing from Crisis Response
The ECB’s Draghi gave a speech in which he extolled the achievements of regulatory reform since the beginning of the Great Financial... Read More
Rating Firms and the Information Matrix
The Information Matrix can be used to examine the rating firms’ business model and the impact of the Transparency Label Initiative on... Read More
Transparency is a 0/1 variable
Recently, I was asked why the Transparency Label Initiative treats transparency as a 0/1 variable. The reason is either there is adequate... Read More