To the extent that any deposit (even a CD) can be lent out and that lent money redeposited, the system is FRL -- that's the definition of...
This and this contradict this A 25% downside is hardly an "abyss" and hardly a "no where to hide" situation. Just play the short-side....
This chart is JUNK! First, the use of a linear scale intentionally misleads. Redo this chart with a logarithmic scale and you will see that the...
OP port unity is now her E?
Yes, and a CD or bond is a fractional reserve instrument -- the bank holding the CD only holds a fraction of that CD in the vault and lends most...
And therein lies a big problem. Although I genuinely like Taleb, my quibble with his plan is due to the relative numbers of people that want 3%...
I can picture all manner of systems, most of which either perform very poorly or do not accomplish what they claim to accomplish. For example:...
But the relationship is much more symmetric than you think -- depositors and investors "own" the bank as much as the bank "owns" it's borrowers....
Excellent points! I freely admit that I've not read the 700 some-odd pages of the stimulus bill. I would hope (perhaps in vain) that the jobs...
And the problem is worse than that because its not just the reserve ratios of banks, but the reserve ratios of all financial service companies and...
Yes, the $100-300K does make sense (and may even be a good deal). If all you want to do is pay someone 40k for doing nothing (i.e., pure...
I agree with the sentiment, but option #5 ("screw the old banks") == #1 ("total collapse") because: 1) "the investors in the old shithead...
Generally, I'd agree that entities that make bad choices should suffer the consequences. and that the government should never reward stupidity or...
This is one of those "averages vs. individuals" problems. That data also covers all housing, not just all mortgages. Thus, for every house that...
I agree with you. It's the companies that create new jobs that should get the support, not the ones that lose jobs. Unfortunately,...
From 1981: [img] Some things never change.
The only other minor US tax issue is "gift taxes" because the IRS will see that you gave your dad X dollars and he gave you back Y dollars. As...
And when someone becomes an even bigger bully trying the retaliate against a small bully by attacking everyone who looks vaguely like the bully,...
Exactly! Bush-Cheney killed more Americans than bin Laden did. And Bush-Cheney did everything they could to help terrorists raise money, anger,...
Scary bit is that these CDS underestimate the probability of default of the U.S. because they are effectively a spread between the economic...
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