“Dad, what’s a financial crisis?”


One of Jamie Dimon’s daughters called him up from school with a question more than a decade ago: “Dad, what’s a financial crisis?” 

The billionaire who runs JPMorgan Chase & Co. tried to put her at ease. “It’s the type of thing that happens every five to seven years,” he told her, he later testified to the Financial Crisis Inquiry Commission. 

The problems are old, and the system is delicate: We let banks make long-term investments, including loans and bonds, while taking deposits from customers who can demand them back whenever they want.

https://englundmacro.blogspot.com/2023/04/who-was-to-blame-for-failures-of.html


History

The Bank for International Settlements will gather top central bankers and financiers for a meeting in Basel this weekend amid rising concern about a resurgence of the “excessive risk-taking” that sparked the financial crisis.

“The concern here is that the prolonged assurance of very cheap and ample funding may encourage excessive risk-taking,” the BIS invitation note says.

FT January 6 2010

https://englundmacro.blogspot.com/2010/01/basel-banken-har-kallat-till-mote-i.html


Gamla Mor Anna och bankernas affärsmodell

Gamla Mor Anna och bankernas affärsmodell (englundmacro.blogspot.com)


Reddit, Lehman Brothers, Newton och tulpanlökarna

https://englundmacro.blogspot.com/2024/03/reddit-lehman-brothers-newton-och.html


Wall Street Casino Is Open for Business as Meme Stocks Take Over

https://www.bloomberg.com/news/articles/2024-05-14/wall-street-casino-is-open-for-business-as-meme-stocks-take-over


Cryptocurrencies and all that (Bitcoins, Tulips, South Sea Company)

https://englundmacro.blogspot.com/2021/05/jemima-kelly-cryptocurrencies-and-all.html


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