Banks Borrow Too Much

Moneybox
A blog about business and economics.
March 8 2013 10:48 AM

How I Learned To Stop Worrying And Love Higher Capital Requirements

Now that I'm finished with The Bankers' New Clothes I'm persuaded. Read my column on the book here.

More schematically, if I have a problem with the book it's that in their quest to debunk myths about the problems with massively raising bank capital requirements Anat Admati and Martin Hellwig in many ways end up underselling the power of their idea. This is a way to make the banking system safer and drastically reduce the need for bailouts. But it also addresses a lot of the wider social and economic concerns people have about the political economy of the past 15 years or so. A world of higher capital requirements should shrink the profitability of the financial sector somewhat, shrink its overall size somewhat, and rebalance lending behavior somewhat away from consumer debt and toward productive investment.

Matthew Yglesias is the executive editor of Vox and author of The Rent Is Too Damn High.

TODAY IN SLATE

Politics

The Irritating Confidante

John Dickerson on Ben Bradlee’s fascinating relationship with John F. Kennedy.

My Father Invented Social Networking at a Girls’ Reform School in the 1930s

Renée Zellweger’s New Face Is Too Real

Sleater-Kinney Was Once America’s Best Rock Band

Can it be again?

The All The President’s Men Scene That Captured Ben Bradlee

Culturebox

The Simpsons World App Is Finally Here

I feel like a kid in some kind of store.

Technology

Driving in Circles

The autonomous Google car may never actually happen.

The Difference Between Being a Hero and an Altruist

How Punctual Are Germans?

  News & Politics
Politics
Oct. 22 2014 12:44 AM We Need More Ben Bradlees His relationship with John F. Kennedy shows what’s missing from today’s Washington journalism.
  Business
Moneybox
Oct. 21 2014 5:57 PM Soda and Fries Have Lost Their Charm for Both Consumers and Investors
  Life
Quora
Oct. 22 2014 9:51 AM What Was It Like to Work at NASA During the Challenger and Columbia Disasters?
  Double X
The XX Factor
Oct. 22 2014 10:00 AM On the Internet, Men Are Called Names. Women Are Stalked and Sexually Harassed.
  Slate Plus
Working
Oct. 22 2014 6:00 AM Why It’s OK to Ask People What They Do David Plotz talks to two junior staffers about the lessons of Working.
  Arts
Culturebox
Oct. 22 2014 9:54 AM The Simpsons World App Is Finally Here I feel like a kid in some kind of store.
  Technology
Technology
Oct. 22 2014 10:29 AM Apple TV Could Still Work Here’s how Apple can fix its living-room product.
  Health & Science
Bad Astronomy
Oct. 22 2014 10:30 AM Monster Sunspot Will Make Thursday's Eclipse That Much Cooler
  Sports
Sports Nut
Oct. 20 2014 5:09 PM Keepaway, on Three. Ready—Break! On his record-breaking touchdown pass, Peyton Manning couldn’t even leave the celebration to chance.