Politics vs Economics: What Politicians Misunderstand About Markets
Many Happy Returns
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The Problem With Banks' Net Interest Margin
Banks' funding becomes shaky then and much more liable to a bank run if we were to get some sort of economic problem. If banks can't lend for the next crisis, they set up this countercyclical buffer where they've got extra cash set aside during good times. So you've got to let banks make hay while the sun shines - otherwise it stores up problems further down the road.
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