by Summary:
This article continues the discussion started in Part I of this series on a banking debates — but does not finish it. The previous part gave a fast-paced overview of how generic financial firms that operate in fixed income view the world, along with some of the special properties of banks versus those other investors. In this, I return closer to an ongoing debate in economics: what limits bank lending? This article attempt to give a simplified view from the perspective of an individual bank — without attempting to discuss the whole financial system.I expect that many economists will be unhappy with the discussion. Allegedly, I will have missed important factors. Those will be discussed in a follow up article, but they are not answering the question of how a bank looks at the problem. The
Topics:
Mike Norman considers the following as important:
This could be interesting, too:
This article continues the discussion started in Part I of this series on a banking debates — but does not finish it. The previous part gave a fast-paced overview of how generic financial firms that operate in fixed income view the world, along with some of the special properties of banks versus those other investors. In this, I return closer to an ongoing debate in economics: what limits bank lending? This article attempt to give a simplified view from the perspective of an individual bank — without attempting to discuss the whole financial system.I expect that many economists will be unhappy with the discussion. Allegedly, I will have missed important factors. Those will be discussed in a follow up article, but they are not answering the question of how a bank looks at the problem. The
Topics:
Mike Norman considers the following as important:
This could be interesting, too:
Michael Hudson writes Why the War in Ukraine is Meant to Drag On: Strategic Goals, European Discontent, and NATO’s Role
Mike Norman writes Modern Monetary Theory film proves finding the cash isn’t the problem — William Thomson
Bill Haskell writes Manufactured Evidence of Voter Fraud
NewDealdemocrat writes Manufacturing remains in contraction, with construction on the brink
This article continues the discussion started in Part I of this series on a banking debates — but does not finish it. The previous part gave a fast-paced overview of how generic financial firms that operate in fixed income view the world, along with some of the special properties of banks versus those other investors. In this, I return closer to an ongoing debate in economics: what limits bank lending? This article attempt to give a simplified view from the perspective of an individual bank — without attempting to discuss the whole financial system.Bond EconomicsI expect that many economists will be unhappy with the discussion. Allegedly, I will have missed important factors. Those will be discussed in a follow up article, but they are not answering the question of how a bank looks at the problem. The actual perspective of a bank with regards to its balance sheet strategy will have no resemblance to Economics 101 stories.…
Banking Debate Woes: Part II
Brian Romanchuk