How Deposit Insurance Reduces Financial Stability

Andrew Lilico has written a great article for The Telegraph on the dangers of deposit insurance: In a classic 2005 paper from the highly authoritative Journal of Monetary Economics, Asli Demirgüç-Kunt and Enrica Detragiache investigated the question “Does Deposit Insurance...

Phases Of The Crisis – Are We Approaching The Endgame?

Phase 1: Greenspan, the arch money crank The Greenspan “put”, and the collective adoption by most central bankers of low interest rates after the dot-com bust and 9/11, caused one of the largest injections of bank credit in history. Since bank credit circulates as money, we can...

Remember: Real Bankers are Fiduciaries

The Interim Report on our banking system by Sir John Vickers was released on Monday. There is no mention in all of the report that a banker is a fiduciary to his client first and foremost. Call me old fashioned, but the casino banking of “lets place our bets” (of course with...