Date: June 12th, 2008

Capital, almost as good as money

12 June, 2008 (07:54) | Capital markets, GSEs, Regulation and Reform, Subprime | 2 comments

The great Yogi Berra, whom I’m fond of quoting, upon being asked why he endorsed a product, replied:
 

“Don’t make that check out to ‘bearer’”
 
Because they paid me in cash, which is almost as good as money.
 

 
For financial institutions, capital is just as good as money, even if it’s not cash – and this matters enormously, [...]