Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Display:
Is the Crystal Ball Clearing? | 148 comments (147 topical, 1 editorial, 0 hidden)
Re: A shift in expectations (none / 1)
But that involves lags and risks that buying an existing asset doesn't have.

Also, if you buy the existing asset on credit, the existing asset acts as collateral. If you borrow to build, there's no collateral until the thing is built.

Therefore, the banking sector has a bias against lending for capital formation and for lending towards asset bubbles.

There are three stories about the euro crisis: the Republican story, the German story, and the truth. -- Paul Krugman

by Migeru (migeru at eurotrib dot com) on Tue Mar 13th, 2012 at 04:42:56 PM EST
[ Parent ]

Others have rated this comment as follows:

generic 4

Is the Crystal Ball Clearing? | 148 comments (147 topical, 1 editorial, 0 hidden)
Display:

Top Diaries

Brexit: Digital Approach #SettledStatus In UK

by Oui - Jan 23
20 comments

The narcissism of minor differences

by Frank Schnittger - Jan 14
13 comments

Last Obama Stronghold In Libya About to Fall

by Oui - Jan 19
17 comments

The EU28 Is Dead - Long Live the New EU3!

by Oui - Jan 17
7 comments

Impeachment gets real

by ARGeezer - Jan 17
24 comments

A Final Warning

by Oui - Jan 10
112 comments

Environment Anarchists

by Oui - Jan 13
4 comments

More Spanish repression

by IdiotSavant - Jan 6
8 comments

Recent Diaries

Yad Vashem and Holocaust: Putin's Private Party

by Oui - Jan 24
7 comments

Brexit: Digital Approach #SettledStatus In UK

by Oui - Jan 23
20 comments

Last Obama Stronghold In Libya About to Fall

by Oui - Jan 19
17 comments

The EU28 Is Dead - Long Live the New EU3!

by Oui - Jan 17
7 comments

Impeachment gets real

by ARGeezer - Jan 17
24 comments

The narcissism of minor differences

by Frank Schnittger - Jan 14
13 comments

Environment Anarchists

by Oui - Jan 13
4 comments

Reagan and (Dis)Honor - USS Vincennes 290 Killed

by Oui - Jan 13
1 comment

A Final Warning

by Oui - Jan 10
112 comments

Ukraine Plane Crash - East-West Conspiracies

by Oui - Jan 9
31 comments

Icon Che Guevara Replaced by Qassam Soleimani

by Oui - Jan 8
12 comments

More Spanish repression

by IdiotSavant - Jan 6
8 comments

Iran Hostilities: Retaliation Missiles Launched [Update]

by Oui - Jan 6
116 comments

Revered Martyrs? Holy Hell!

by ARGeezer - Jan 5
41 comments

United States of America Declared a Bandit State

by Oui - Jan 4
93 comments

Quds Force Commander Qassem Soleimani Martyred In Baghdad

by Oui - Jan 3
86 comments

Social-Democrats and Leftists Need to Fight Back

by Oui - Jan 2
14 comments

Happy New Year to one and all

by Frank Schnittger - Dec 31
18 comments

East-West Schism: Destruction Process Inside Europe

by Oui - Dec 29
13 comments

Book Report: Minitel, Welcome to the Internet

by asdf - Dec 28
5 comments

More Diaries...

Occasional Series