Commentaries (some of them cheeky or provocative) on economic topics by Ralph Musgrave. This site is dedicated to Abba Lerner. I disagree with several claims made by Lerner, and made by his intellectual descendants, that is advocates of Modern Monetary Theory (MMT). But I regard MMT on balance as being a breath of fresh air for economics.
Friday, 10 June 2011
Bond holders in the Bank of Ireland who got a mouthwatering 13.75% for years complain about haircuts!
Even had these creditors of the Bank of Ireland received a more normal return on their investment, I wouldn’t have given a hoot if their entire investment had been wiped out. That’s free markets for you. Or it used to be: nowadays, the rich aren’t allowed to lose money. The latter is a privilege reserved for the poor or those with less good political connections.
Hat tip to Mark Wadsworth.
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