Month: March 2008
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Moral Hazard
The U.S. government is trying to free up credit, by reducing interest rates and other steps. This is probably good for the economy. It also has the effect of reducing the risks faced by banks which made some very bad investment decisions in purchasing unsecured debt. This is a moral hazard: when things go well,…
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Lukyanenko Watch
I recently read the trilogy of books by Sergei Lukyanenko: Night Watch, Day Watch, Twilight Watch. I’m surprised they aren’t better known–my local science fiction bookstore doesn’t carry them at all. On the surface they seem rather derivative: they involve a struggle between the forces of light (the Night Watch) and the force of darkness…