“Society always stands as the loss-absorber of last resort” — TED “There will always be a tail of financial risk that society must absorb” — David Murphy [Note: TED deserves a more t…| Synthetic Assets
6 posts published by csissoko during February 2012| Synthetic Assets
There are two major problems with collateralized interbank lending. The first is that there’s no reason to believe that collateral will function to protect the lender in the event that a major ban…| Synthetic Assets
I agree with Michael Pettis on one thing: ‘the US dollar’s role as the primary safe currency has made America the chief enabler of global economic distortions’. Pettis, however, seeks to frame this…| Synthetic Assets
Many have remarked that the rampage of the so-called DOGE and Elon Musk (whose position with DOGE has yet to be formally established as far as I am aware) through the inner workings of the US gover…| Synthetic Assets
Even after verifying that banking was indeed an unlimited liability enterprise in the 19th century, TED appears to struggle with the idea that anybody with wealth would be willing to take on such r…| Synthetic Assets
The FT produced an interactive graphic last month exploring the many ways that banks are providing funding to the world of private equity, and asked the question: “could the private equity industry…| Synthetic Assets
The fundamental problem that economics should seek to solve is what I will call the primary liquidity problem: An individual, S, has a good that she wants to sell There exists a buyer, XH, with the…| Synthetic Assets
There’s been a vast discussion of Silicon Valley Bank and it’s failure over the past week. It has been of extremely high quality, and I owe great thanks to all those who have both produ…| Synthetic Assets
In general, I read Michael Pettis, Brad Setser and Matthew Klein and am amazed by what I learn. They are experts in the best sense of the word: inquisitive, open to argument and very effective at p…| Synthetic Assets
Before there were money market funds — and their finance of banks and big corporations borrowing on commercial paper and other wholesale markets — monetary policy in the US used to be i…| Synthetic Assets
The Background Hedge funds and private equity funds: How vast pools of money escaped regulation Derivatives and the enforceability of margin Mortgage lending and investment banking: 1930s reform an…| Synthetic Assets
A consequence of the special protected status granted by the US government to the money center banks was that even after the LDC crisis they continued to raise money with ease and at low cost relat…| Synthetic Assets
Last updated: September 18, 2019 References Tobias Adrian & Hyun Song Shin (2010), ‘Liquidity and Leverage’. Journal of Financial Intermediation 19, pp. 418 – 437 Suzanna Andrews (1987). Does G…| Synthetic Assets
After an outpouring of excessive and unwarranted humility, TED gave a nice critique of some of the points in my previous post, which I will summarize (probably inaccurately) as (i) Can a system of…| Synthetic Assets
