Bottom line: banks are the economy's risk bearers. But for the past 30 years we've been trying to 'de-risk' banks by discouraging unsecured commercial lending and promoting collateralized lending. That's a recipe for instability, not stability.
There are actual mathematical proofs that make this so; for economics and avalanches, it still holds.
Otherwise I am discovering the economists, some, are not recognizing that the right to coin is the same as devaluation and devaluation is just a more intelligent default.
The economists and VPs at the Fed still suffer Nixon Shock Hysteria. I can see why Selgin has to be nice to them. Hysterical central bankers are a real problem, Yellen did not really suffer it, somehow missed the shock I suppose.
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