I’m sharing the link instead of a full cross-post because this essay has:
2 footnotes, with links that actually work
1 GIF, 2 charts, 5 expanding brains
30+ lively comments
This is a “much more than you wanted to know” type post on the financial industry:
Why everyone hates it, except for people in positions of power.
The value of finance in coordinating trade across space and time, told via the parable of Banksy and the corn cobs.
Are mortgage-backed securities a scam or a brilliant innovation?
The stupid arguments about bailouts, and the smarter arguments for/against bailouts.
Economists writing books about bank equity ratios without googling what those equity ratios actually are.
What is up with equity ratios? Is making banks hold 50% capital the solution to financial crises?
What banking regulations actually make banks do.
The inextricable romance between finance and government.
A final request for incrementalism and humility.