Tag Archives: risk

Malinvestment and Endogenous Money

So much has been written about the endogeneity of money that I thought it was now widely accepted. But recent exchanges have shown me that people STILL aren’t getting it. Most recently, there have been two themes doing the rounds that bother me: Continue reading

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Size in Banking: Efficiency of Scale vs. Abuse of Power

by Guest Authors: Eric De Keuleneer, DeKeuleneer.com and Nastassia Leszczynska Editor’s Note: This is posted as a companion article to The Great Debate©:  Will Dodd-Frank be Effective? Introduction: Economies of scale, optimal size and competition in banking It is worth … Continue reading

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Do We Need Big Banks?

Numerous studies have shown that efficiency and risk-return paramaters degrade when banks become larger than $25-$50 billion in assets. Continue reading

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A Behavioral Framework for Time Diversification

Investment risk covers a much bigger range of variables than generally recognize. Not the least of risk are investor behavior and cognitive errors. This classic research paper throws many time honored canards under the bus. Continue reading

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