We Have Too Few Banking Crises

I’ve long argued that part of the reason why things have gotten to this point is that we don’t have enough smaller banking crises, so we just have the odd epochal one instead. It’s much the same point as is made in fire ecology: Regular smaller fires are both safer and less ecosystem-damaging than periodic conflagrations.

Check the following figure to see how dangerously quiet recent banking history has been:

crises

More here and here.

Related posts:

  1. Books: Why Are there So Many Central Banking Crises?
  2. Banking Committee Meetings: Unprepared Kids
  3. Fed/Banking Quote du Jour
  4. Fire Regimes, Financial Crises, and Type Conversion in Markets
  5. Chris Dodd: Investment Banking Regulations Needed