The standard argument for government regulators who supervise the extent of bank risk is that if banks take on too much risk in the pursuit of short-term profits, but also raise the risk of becoming insolvent, there are dangers not just to the banks themselves, but also risk to to bank depositors, the supply of credit in the economy, and other intertwined financial institutions.
New vehicle owners often forget to include the cost of auto financing in their cars' total price.
Bitcoin maximalists have been selling the value of Bitcoin as a potential investment portfolio diversifier, but increasingly there are very few, if any, assets which can effectively diversify a portfolio.
For a lot of people, the idea of negative interest rates sounds as if it must violate some law of nature, like a perpetual motion machine.
The word "exuberance" has a special meaning for investors. Back in 1996, then-Federal Reserve chair Alan Greenspan gave a speech as stock prices rose during the "dot-com" boom.
It’s one thing when your worst fears remain in your mind, but when they manifest in your markets, then it’s time to gear up for action.
W. Kip Viscusi delivered the Presidential Address at the (virtual) Southern Economic Association meetings last November on the subject "Economic Lessons for Coronavirus Risk Policies."