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The Federal Reserve's regulatory issues

Explain It to Me

00:00

Bank Capital and Living Wells Are Not Superfluous.

i think bank capital rules have very little cost for the economy as a whole. You're largely just changing how banks fund themselves. The benefits are quite big no matter what the crisis is. If you can finance your investment with a lot of debt, then your upside is enormous if the investment pays off well. And this is why we need to regulate banks.

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