Quantcast
Channel: Economists' Forum » Economics
Viewing all articles
Browse latest Browse all 20

The financial crisis: of Keppra and convulsion

0
0

The collpse of Lehman was similiar to a stroke causing neuronal hubs to die. Getty Images

By James Park

With the start of QE3 and indefinite bond buying by the Fed, the financial crisis continues to morph. This idea was promulgated by El-Erian of Pimco who claims that a crisis of bank balance sheets may evolve into a crisis of sovereign balance sheets.

We already see an outline of what a sovereign balance sheet crisis may look like in Greece. Previously, we discussed the metaphor of septic shock and the need for emergent resuscitation with liquidity as a temporary salve, as covered in the first piece – Of Lasix and liquidity. In the last of this three-part series, we look at how a complement metaphor in the form of epileptic activity may forewarn and outline steps to minimize the chances or aftermath of the next possible financial convulsion.

Read more

Viewing all articles
Browse latest Browse all 20

Latest Images

Trending Articles





Latest Images