Banditry

Northern Rock and moral hazard

People have been blethering on about the 'moral hazard' created by government deposit insurance for banks. Unfortunately, they're idiots. Deposit insurance *does not* encourage financial institutions' shareholders to invest in risky assets, because it doesn't prevent the shares from losing all their value when the risky assets go tits-up and the company goes bust. Since … Continue reading Northern Rock and moral hazard

160? We like

Ignore the pointless new wi-fi iPhone-with-no-phone device (although it'll serve as a good badge of 'who is a tosser'). The truly excellent news is that a 160gb iPod is soon to be available. I reckon that'll last me at least another year of music... Unrelatedly, I've got another Sharpener piece up about the Tube strike … Continue reading 160? We like