Tuesday, October 22, 2013

Debt ceilings, Dollars and Bank Charges

I have yet to read any of Prof. Farrell's books, but I have followed what he has to say for a few years, and I like his ability to pull together sometimes seemingly-unconnected data, to try to see where we're headed. Here he works out that depositors in a bank are actually a liability for the bank: we cost them money! Why encourage deposits when you can cream profits off the top on derivatives and from the shadow banking system? 


No comments:

Post a Comment