Posts Tagged ‘risk’

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    Too Big To Fail

    Aug 15, 11 • 108 Views • Businesses, Money and Monetary Policy, Regulation, Thinking EconomicallyNo Comments

    Imagine for a moment that you are the CEO of a large bank. Offered the opportunity to participate in a risky business deal, you say, “Yes.” If the venture succeeds, you benefit. If it fails and threatens your bank’s survival, the government...

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    Too Big To Fail

    May 25, 11 • 98 Views • Behavioral Economics, Businesses, Demand, Supply, and Markets, Economic Debates, Economic History, Financial Markets, Households, International Trade and Finance, Money and Monetary Policy, RegulationNo Comments

    The HBO documentary, “Too Big To Fail” was excellent. But what to come away with? TBTF (Too Big To Fail) solves problems and it creates them. TBTF can reverse a confidence crisis. When the world is worried that the failure of a large bank will...