Barron’s (December 10)
As it attempts to address inflation without derailing the recovery (or worse), the Fed will be walking a tight rope. On the upside, “the banking system is now both better capitalized and less exposed to illiquidity risk than in the past.” Moreover, “both households and firms are in better shape to weather higher interest costs now than they were in 1981 or, indeed, other episodes of monetary tightening.”
Tags: Banking system, Capitalized, Derailing, Exposed, Fed, Firms, Households, Illiquidity, Inflation, Interest costs, Recovery, Risk
Reuters (June 9)
“Like the banking system, the internet looks simple from the outside but is really an elaborate patchwork. Tuesday’s outage involving Fastly (FSLY.N), a so-called content delivery network, is a reminder for people with their lives in the cloud that pieces of the puzzle can fail. And unlike with banks, there’s little government oversight and no backstop, so it’s good for users to be reminded that instant online gratification is not guaranteed.”
Tags: Banking system, Cloud, Content delivery, Elaborate, Fastly, Government, Internet, Network, Outage, Oversight, Patchwork, Simple
Bloomberg (January 10)
Today’s “easy-money policies” appear to be “setting up global markets for the next Minsky Moment.” If economist Hyman Minsky is right and the modern “economic cycle is driven more by surges in the banking system and in the supply of credit,” we can expect a tremendous crash when it ultimately comes.
