There is much talk about the sovereign-bank "doom loop". But the bank-to-bank relationship is just as widespread - and just as dangerous.
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Portugal's Espirito Santo Group shows that complex, opaque corporate structures with embedded banks create moral hazard and the risk of fraud.
Almost nobody actually understands how payment systems work. That is: if you “wire” funds to a supplier or “make a payment” to a friend, how does the money get from your account to theirs?
Acharya and Steffen (A&S), authors of “Falling short of expectations? Stress-testing the European banking system”, have written a confusing paper whose results are biased. Here's why.
It's possible that a society of educated people is likely to be more cultured and scientific-minded than one of non-graduates, and this should have positive externalities in the form of better political discourse and higher culture. There is, however, little evidence of this in practice.
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RT @jdportes: Immigration drives growth: @plegrain explains why politicians' cowardice threatens UK economy: http://t.co/XpeZmoZIES
RT @CJFDillow: Blogged: the revolution will not be televised http://t.co/fAmjaTVcS8 A reply to @DAaronovitch
RT @tomashirstecon: As promised @DuncanWeldon: Why I'm not panicking about the scariest chart for the UK econ http://t.co/OsFXG5SuPX cc @jo…
RT @sanderwagner: Krugman thinks through the greek bargaining situation http://t.co/OPQDRQuxUp
Debt restructuring: a proposed principle - by @sjwrenlewis http://t.co/3LvYbDTd1s