Category Archives: Doomsday scenarios

How Bank Networks Amplify Financial Crises: Evidence from the Great Depression

The Global Crisis emphasized the fragility of international financial networks. Despite this, there has been little historical research into how networks propagate financial shocks. This column explores how interbank networks transmitted liquidity shocks through the US banking system during the Great Depression. During banking panics, the pyramided-structure of reserves forced troubled banks to reduce lending, thus amplifying the decline in investment spending.

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After Distancing Herself From Bill Clinton’s Economic Policies, Hillary Wants Him as Mr. Economic Fix It

Like the Bourbons, the Clintons appear to have learned nothing and forgotten nothing.

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Satyajit Das: “Stay in the Name of Reform” – The Fed and ISDA’s Derivative Bankruptcy Initiative

Why a proposal to “stay” derivatives termination in the event of bank bankruptcy is inconsequential and avoids bigger questions about the use of derivatives and failure to rein in risks in this market.

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Michael Hudson: Warning to Europe – How the TTIP Threatens Public Health Care and Pensions

Why the TTIP poses a wide-ranging threat to European health and pension policies.

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As Clinton Looks Vulnerable, Event Risk Favors Trump (and Sanders)

When Donald Trump became the presumptive Republican nominee, you could almost hear the glee from Camp Clinton. Lambert called the tweets from her supporters “giddy”. The pundits saw Advantage Clinton in her presumed lock on women, blacks, Hispanics, as well as the divide of red versus blue states working in her favor. Yet the body […]

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