Rethinking economics is starting now, in Britain

CLAPTON

antrobus wrote: »

Read the article again;

The vulnerability of banks to a collapse in the debt bubble is illustrated by the recent rapid rise in their funding gap (see chart), which shows that in recent years the amount lent to customers that is not backed by customer deposits has soared. Banks are, therefore, having to rely much more on the wholesale money market, which tends to be far more expensive than customer deposits.

Doesn't really read as a warming of financial meltdown; more a likely rise in funding costs.

John_Pierpoint

So stock brokers are descended from lottery ticket resellers.

Bankers from fly by night Jewish goldsmiths.

And the global financial crisis was created when gamblers and physicists, using computer "intelligence and processing speed" took control from the two above?



However, the book didn't convince me that speculating in money markets is actually of any use to anyone, except those it enriches.

I think that might be a bit of a simplistic judgement.

antrobus

CLAPTON wrote: »

Doesn't really read as a warming of financial meltdown; more a likely rise in funding costs.

It refers to the "vulnerability of banks"; you can interpret that as you like. Personally I don't think that the BoE quite anticipated how bad things would get and how 'vulnerable' some banks were. But then hindsight is always a wonderful thing.