9. Sweet Subsidies

Chapters in this book

1. Frontmatter i
2. Contents vii
3. Preface to the 2024 Edition ix
4. Preface xiii
5. Acknowledgments xvii
6. 1. The Emperors of Banking Have No Clothes 1
7. PART I: Borrowing, Banking, and Risk
8. 2. How Borrowing Magnifies Risk 17
9. 3. The Dark Side of Borrowing 32
10. 4. Is It Really “A Wonderful Life”? 46
11. 5. Banking Dominos 60
12. PART II: The Case for More Bank Equity
13. 6. What Can Be Done? 81
14. 7. Is Equity Expensive? 100
15. 8. Paid to Gamble 115
16. 9. Sweet Subsidies 129
17. 10. Must Banks Borrow So Much? 148
18. PART III: Moving Forward
19. 11. If Not Now, When? 169
20. 12. The Politics of Banking 192
21. 13. Other People’s Money 208
22. PART IV: Undermining Democracy and the Rule of Law
23. 14. Too Fragile Still 231
24. 15. Bailouts and Central Banks 268
25. 16. Bailouts Forever 290
26. 17. Above the Law? 313
27. Notes 353
28. References 527
29. Index 563