According to Alan Blinder, a former vice chair of the Federal reserve and professor of Economics at Princeton and a Keynesian when Washington Mutual one of the largest banks in the U.S. with assets of $328 billion went bankrupt in 2008 and was sold to J.P.Morgan Chase by the Federal Reserve and the Federal Deposit Insurance agency in 2008 none of its deposit0rs including those with assets in excess of $250,000 U.S. lost money. In Cyprus on the other hand according to the latest reports the impending bankruptcy of the Laiki bank with assets below 40 billion will apparently involve losses of as much as 30% for depositors above the deposit insurance level of €100,000. Those with accounts below 100,000 will have them transferred to the Bank of Cyprus. The deposits of those above 100,000 will be kept in the bankrupt bank and suffer accordingly.It is an interesting contrast between Europe and America and the quality of their respective central banking systems to compare the outcomes. How long the second bank will last will depend upon the banking panic that may follow these events. The repercussions will be felt far and wide.
-
Recent Posts
- Fed and Bank of England raise rates Bank of England warns of recession
- Federal Government Budget cautious document :unemployment projected to be 5.8% then fall to 5.5 % in 2022-23
- Hello after much faffing about with the help of my computer savvy son I am glad to say that my wordpress site is once again accessible
- Poli 349 AA (9930): Political and Social Theory and the City. Course outline fall 2021. Thursday 5:45-8:15 Prof. Harold Chorney (Latest Version).
- Poli 204 Course outline Prof.Chorney latest version
Recent Comments
harold chorney on Larry Summers is correct about… Harold Chorney on Larry Summers is correct about… Spencer Hall on The Demand for Money and the i… Alex Benady on Dominic Raab eliminated in rou… haroldchorneyeconomi… on The Federal Reserve‘s obsessio… Archives
- May 2022
- April 2022
- August 2021
- June 2021
- May 2021
- April 2021
- March 2021
- February 2021
- January 2021
- December 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- March 2020
- September 2019
- June 2019
- May 2019
- March 2019
- February 2019
- December 2018
- November 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- November 2017
- October 2017
- September 2017
- August 2017
- January 2017
- December 2016
- November 2016
- October 2016
- September 2016
- August 2016
- July 2016
- June 2016
- March 2016
- February 2016
- January 2016
- December 2015
- November 2015
- October 2015
- September 2015
- August 2015
- July 2015
- June 2015
- May 2015
- April 2015
- March 2015
- February 2015
- January 2015
- December 2014
- November 2014
- October 2014
- September 2014
- August 2014
- June 2014
- May 2014
- April 2014
- March 2014
- February 2014
- January 2014
- December 2013
- November 2013
- October 2013
- September 2013
- August 2013
- June 2013
- May 2013
- April 2013
- March 2013
- February 2013
- January 2013
- December 2012
- November 2012
- October 2012
- September 2012
- August 2012
- July 2012
- June 2012
- May 2012
- April 2012
- March 2012
- February 2012
- January 2012
- December 2011
- November 2011
- October 2011
- September 2011
- August 2011
- July 2011
- June 2011
- May 2011
- April 2011
- March 2011
Categories
- Alberta
- American Presidential election
- anti austerity
- austerity
- balance of payments
- Brexit
- business cycles
- Canada
- China and europe
- cinema
- civil liberties
- classical economics
- community
- Cuba and Latin america
- Cyprus banks
- deficit hysteria
- deficits and debt
- Doug Ford and authoritarian politics
- Electoral roof falls in on Miliband
- European debt crisis
- European financial stability fund
- European unemployment
- European Union and UK
- Federal Reserve
- fiscal policy
- France politics+economy
- Free trade and Canadian history
- free trade and globalization
- full employment
- funding essential infrastructure
- government shut down+debt ceiling U.S.
- Greek sovereign debt crisis
- Hayek
- Health care
- infrastructure investment
- Italian debt crisis
- Italy politics and Banking
- J.M.Keynes
- Japan
- Japanese unemployment
- JFK docs, Cuba,Canada
- John Diefenbaker and JFK
- Keynesian multiplier
- Keynesian policy
- Keynesian welfare state
- labour market clearing
- Milton Friedman and NAIRU
- modernism versus ^post modernism
- monetary policy
- monetary policy and Keynes
- Montreal politics
- Mr.Papandreou and democracy
- NAFTA negotiations
- nationalism and trade
- natural rate of inflation
- natural rate of unemployment
- NDP Canadian politics
- Olympic games and winning medals
- Ontario elections
- progressives
- public infrastructure investment
- quantitative easing
- quantitative easing and Keynes
- quantity theory of money
- Québec
- Québec election
- Schumpeter
- sovereignty of quebec
- Spain
- The Great Depression
- the metropolis
- treasury view
- U.K. economy
- U.S.
- UK local elections
- Uncategorized
- unemployment
- urban culture
Meta