My oldest leaves for college in the morning. Yesterday, we were talking to him about his new bank account and how to use it responsibly to avoid overdrafts, fees, and such. The conversation gave me a new factor to consider in assessing the amount of systemic risk: the number of 18-year old boys with checkbooks.
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3 responses to “New Frontiers in Systemic Risk”
Girls are no better.
It seems odd that you’re having this conversation now, rather than four or five years ago. I thought getting a bank account (conventionally a passbook savings account, but these last few years, why not a checking account?) was a standard early-teen-or-younger rite of passage.
Why blame the borrowers? To measure systemic risk, I’d much rather know how many traders are wandering around with ISDA licenses (to enter into credit default swaps).