Exaggerating What Bank Supervision Can Do Creates Systemic Risk
Former NY Fed bank examiner Carmen Segarra has once again shined a bright light on the gap between the narrative and reality... Read More
Protecting Banks at All Costs Still Mission of the Committee to Save the Banks
As we approach the tenth anniversary of the 2008 acute phase of the Great Financial Crisis, the Committee to Save the Banks... Read More
The Committee to Save the Banks – Part IV: Defending the Indefensible
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The Committee to Save the Banks put on a clinic in their ongoing effort to defend their choice to save the banks... Read More
PhD Economist Derp: Macro-Prudential Regulation
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Macro-Prudential regulation is the regulatory embodiment of PhD Economist Derp. The ECB offers a quick guide into what it is and what... Read More
PhD Economist Derp: Informationally-Insensitive Debt
Nobel prize winning Economist Paul Krugman explains what is a sure sign of when a PhD Economist is being a “derp”: OK, so... Read More
Gordon Brown: I save the world, except …
In what appears to be an endless stream of books by financial crisis policymakers, the UK’s Gordon Brown trots out his memoir.... Read More
Deception “has to happen in a financial crisis”
A few days ago, I wrote a post on the Bank of England’s Andrew Haldane confessing the central bank engaged in deception (some... Read More
Yellen confirms Too Big to Fail alive and well
In her 2017 Jackson Hole speech, Fed Chair Janet Yellen confirmed Too Big to Fail is alive and well. She observed: Finally,... Read More
Fed confirms none are so blind as those whose job depends upon not seeing
Periodically I delude myself into thinking senior Fed officials/PhD economists actually understand how our financial system is designed and is suppose to... Read More
Playbook for housing related financial crisis response
Kevin Carmichael wrote a terrific article in which he makes the case for the Canadian government bailing out borrowers when its current housing... Read More
Nobody ever went to jail for saving the Too Big to Fail banks
Typically, where there is smoke, there is fire. The BBC reported the Bank of England pressured the Too Big to Fail UK banks... Read More
Fear and bank bailouts
In a speech by Jon Nicolaisen, Deputy Governor of the Central Bank of Norway, he asks should banks be bailed out. No.... Read More
Gaming the stress tests
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The Fed released the results of its annual stress tests and the question was why were JPMorgan and Goldman so close to... Read More
Stress tests create moral hazard
One of the signature regulatory innovations to emerge since the financial crisis began in August 2007 is the annual stress test. Conventional... Read More