Tag: crises

Bad Banks as a Response to Crises: Global Outlook

Bad Banks as a Response to Crises: Global Outlook

During the 2008/09 financial crisis, American and European banks faced massive non-performing loans (NPL). The only player with the resources to assist banks in such situations is the government. This means that the problem as well as its “solution” become […]

Debt Deflation and Avoiding Value Traps

Debt Deflation and Avoiding Value Traps

During a panic, it is useful to reflect on the degree to which the real economy has been driven by the financial economy. In the Great Depression, the degree was heavy; in the seventies, it was light.  Today, my guess […]