A Note on Carter Price's: What Have We Learned About the ACA Over the Past Year?
Over at the London Economist: May Zanny Minton Beddoes Do as Well Relative to John Micklethwait as Barack Obama Has Done Relative to George W. Bush

An Inadequate Note on Nick Bunker on Bank Leverage...

I've been trying to think of an intelligent comment to make on the extremely-fast-at-the-keyboard Nick Bunker's Taxation in the name of equity on the desirability of taxing borrowing by big banks. I strongly approve: too-big-to-fail banks are extremely bad news, I have come to believe, for three reasons:

  1. They create systemic risk.
  2. They are extremely powerful lobbyists--much more powerful than ten banks each one-tenth their size would be.
  3. Regulation of too-big-to-fail banks too-easily steps over the line into social-network revolving-door corruption.

For all these reasons, we want to make it hard to be a too-big-to-fail bank and profitable for managers and shareholders to split such things up--internalize these externalities!

But I find myself of divided mind on the more general Admati-Heilwig-Bunker point that banking should run with a lower debt-to-equity ratio. Equity capital is scarce in this world, and it is far from clear to me that it is best-deployed backstopping banks...