In Defense of Finance

Link post

I’m shar­ing the link in­stead of a full cross-post be­cause this es­say has:

  • 5,300 words

  • 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.

No nominations.
No reviews.