<story><title>Banking-Crisis Interventions, 1257-2019 [pdf]</title><url>https://som.yale.edu/sites/default/files/files/II__metrick-schmelzing%2C%20body%20-%209-7.pdf</url></story><parent_chain></parent_chain><comment><author>specialist</author><text>Graeber&amp;#x27;s book Debt: The First 5000 Years documents that cycles of debt crisis and subsequent forgiveness is historically normal. And probably necessary. I mean, think about it: What other remedies do we have to winner-takes-all? Progressive taxation? Government largess?&lt;p&gt;Made me rethink all the bailouts, etc. Especially with the renewed scholarship on Keynesian 2.0 (MMT).&lt;p&gt;I&amp;#x27;d probably be ok with bailouts, jubilees if they were more fair, more bottom up.&lt;p&gt;Financiers gobbling up all the cheddar, abandoning all their victim&amp;#x27;s, really pisses me off.&lt;p&gt;Insult to injury is lack of consequences, acting aggrieved when their malfeasance is examined. Just one example being Jamie Dimon clutching his pearls when Obama Admin merely suggesting the optics of huge bonuses for execs during a meltdown was a bad look.</text></comment>
<story><title>Banking-Crisis Interventions, 1257-2019 [pdf]</title><url>https://som.yale.edu/sites/default/files/files/II__metrick-schmelzing%2C%20body%20-%209-7.pdf</url></story><parent_chain></parent_chain><comment><author>throw0101a</author><text>One of the co-authors, Paul Schmelzing, published a paper on how interest rates have been on a general downward trend for a few centuries:&lt;p&gt;* &lt;a href=&quot;https:&amp;#x2F;&amp;#x2F;www.bankofengland.co.uk&amp;#x2F;working-paper&amp;#x2F;2020&amp;#x2F;eight-centuries-of-global-real-interest-rates-r-g-and-the-suprasecular-decline-1311-2018&quot; rel=&quot;nofollow&quot;&gt;https:&amp;#x2F;&amp;#x2F;www.bankofengland.co.uk&amp;#x2F;working-paper&amp;#x2F;2020&amp;#x2F;eight-cen...&lt;/a&gt;&lt;p&gt;Interviewed recently on the &lt;i&gt;Finance &amp;amp; History&lt;/i&gt; podcast:&lt;p&gt;* &lt;a href=&quot;https:&amp;#x2F;&amp;#x2F;twitter.com&amp;#x2F;FinanceHistory1&amp;#x2F;status&amp;#x2F;1435170755432624130&quot; rel=&quot;nofollow&quot;&gt;https:&amp;#x2F;&amp;#x2F;twitter.com&amp;#x2F;FinanceHistory1&amp;#x2F;status&amp;#x2F;14351707554326241...&lt;/a&gt;&lt;p&gt;* &lt;a href=&quot;https:&amp;#x2F;&amp;#x2F;anchor.fm&amp;#x2F;carmen-hofmann&amp;#x2F;episodes&amp;#x2F;Interest-Rates-e16rp9u&quot; rel=&quot;nofollow&quot;&gt;https:&amp;#x2F;&amp;#x2F;anchor.fm&amp;#x2F;carmen-hofmann&amp;#x2F;episodes&amp;#x2F;Interest-Rates-e16...&lt;/a&gt;&lt;p&gt;His hypothesis (23m) is that capital stock is fairly long lasting, so except for (mostly) wars and revolutions (and plagues), there isn&amp;#x27;t much demand: people want to rebuild after disasters, and so demand for capital goes up. When things are quiet then there&amp;#x27;s more just sloshing around with not much to do.&lt;p&gt;The oil shock of 1970s, which caused the most recent spike in the last 40 years (which is tapering), was a fairly unique event for rates.</text></comment>