Monday, August 12, 2013

Moral Hazard in Finance

The piece argues that five years after the financial crisis banks are still under capitalized.  Further the financial sector deliberately traffics in hard to understand/value assets, not because it is good for the economy overall, but because there are big profits to be made from doing so. It makes the big banks seem like Frankenstein's monster.

By the way, Calomiris used to be in the Finance Department here.

1 comment:

  1. I'd like to see a simpler form of finance that was intelligible to average people.

    (This is really just a test message to see how the comment appears. In particular, the name on the comments should be the alias set up in Blogger.