Luis Garicano 🇪🇺🇺🇦 @lugaricano@respublicae.eu
Unofficial automated mirror. No copyright asserted. ∎ Economist. Back at LSE as a Professor at @LSEPublicPolicy Summer 2023. Non-resident Fellow @bruegel_org. Recovering MEP. Currently @ChicagoBooth.
Joined Apr 2022
So they know how much they are paying but not what they are buying. Reassuring.
RT @jeuasommenulle: You cannot make this up:
on the call the C-suite of UBS didn't know if the big CS tier 2 Coco was bailed in or not.
🐦🔗: https://n.respublicae.eu/lugaricano/status/1637590964423327747
@CTajadura justo. Residual claimants , se supone!
🐦🔗: https://n.respublicae.eu/lugaricano/status/1637546821248512002
Banking through the looking glass: a "complete write down" of the value of all the AT1 and yet at least 3bn payout to equity holders.
Probably, the end of Co-Cos?
🐦🔗: https://n.respublicae.eu/lugaricano/status/1637541275690729474
RT @jeuasommenulle: You know who did that 2-year guarantee trick before ?
The Irish.
I'm not entirely sure you want to know how it ended.
🐦🔗: https://n.respublicae.eu/lugaricano/status/1637220117640790016
What a huge honor! The @StanfordFleetSt a capella group sung to me the "Luis song"🤣 Thanks!
(Sorry did not catch everyone in camera!)
🐦🔗: https://n.respublicae.eu/lugaricano/status/1636892003194777600
RT @HannoLustig: central banks and governments seem to deal with financial crises the way California has dealt with forest fires, putting out the small fires and creating more fuel for the next big wildfire. little consideration given to long-run incentives.
🐦🔗: https://n.respublicae.eu/lugaricano/status/1636866537859747841
Agree with Summers here ?s=20
RT @LHSummers: It would be very unfortunate if, out of solicitude for the
banking system, the @FederalReserve were to slow down its rate of interest-
rate increase beyond what was appropriate given the credit
contraction. @business https://www.bloomberg.com/tosv2.html?vid=&uuid=12932f00-c53b-11ed-967e-64746d474749&url=L25ld3MvYXJ0aWNsZXMvMjAyMy0wMy0xNy9zdW1tZXJzLXdhcm5zLWZlZC1hZ2FpbnN0LWZpbmFuY2lhbC1kb21pbmFuY2UtdXJnZXMtcmF0ZS1oaWtl
🐦🔗: https://n.respublicae.eu/lugaricano/status/1636866265318060032
RT @ThomasPHI2: (2) reasonable people can disagree. On balance, however, I would have voted against the bailout.
Why?
The first point is that SVB and Signature were outliers. SVB combined aggressive use of HTM (top 10% unrecognized losses, bottom 10% capital) and top 1% uninsured leverage ..
🐦🔗: https://n.respublicae.eu/lugaricano/status/1636516681882411008
A huge fan of Elizabeth Borne. You can see in her no-nonsense attitude in this, her defining speech to parliament, the orphaned holocaust survivor who never tried to get any milage out of her unbelievable life history https://nyti.ms/3lhDF4E
🐦🔗: https://n.respublicae.eu/lugaricano/status/1636498652867997697
RT @McFaul: If you think sanctions against Russia aren't working, what is your solution? Lift sanctions? Really? Reward Putin for very bad behavior?
My recommendation -- push countries to implement more and better sanctions to reduce Putin's resources to continue his invasion.
🐦🔗: https://n.respublicae.eu/lugaricano/status/1636489749308522496
RT @ghostofchristo1: Since everyone’s suddenly bandying about definitions of “wokeness” or whatever, here’s John Gray’s. https://www.newstatesman.com/politics/uk-politics/2023/03/john-gray-triumph-corporate-newspeak
🐦🔗: https://n.respublicae.eu/lugaricano/status/1636470369749204994
It was the right decision for the @ecb to stick to its plan of raising interest rates as scheduled, despite the banking turmoil and the pressure to give in to "financial dominance."
🐦🔗: https://n.respublicae.eu/lugaricano/status/1636421112136622080
RT @HannoLustig: 6/ if you're a bank and you hold MBS, and you just lost a ton of money, you can borrow against what you paid for the MBS, not what it's worth now. another layer of taxpayer protection: not just the credit risk, but also the interest rate risk..but only if you're bank.
🐦🔗: https://n.respublicae.eu/lugaricano/status/1636409390994694144
@HannoLustig Hanno, the question in this case would be who holds these hedges? Insurance? Pensions? Other banks? These are swaps, that must be marked to market everyday, correct? So where are these losses showing up?
🐦🔗: https://n.respublicae.eu/lugaricano/status/1636148924443660288
What a day to give a talk on "Debt and the Euro" at John Taylor's Economic Policy Working Group @HooverInst- with a globally significant institution with $1.400.000.000.000 assets under management (10% of Eurozone Economy) on the brink of default,
🐦🔗: https://n.respublicae.eu/lugaricano/status/1636029737457049600
Financial dominance, defined: not a single macro indicator justifies this change in expectations.
Inflation be dammed.
🐦🔗: https://n.respublicae.eu/lugaricano/status/1636020197864931334
Thinking of this phrase from our October 2020 piece: "central banks are in a difficult position: they are holding the lion of financial stability by the jaws without being able to let go even when a second lion, inflation, may approach." https://cepr.org/voxeu/columns/tackling-inflation-if-it-reappears
🐦🔗: https://n.respublicae.eu/lugaricano/status/1635988235645243392
The robot pretends it is visually impaired in order to get a human to help with a task. How is this not "intelligence"?
RT @leopoldasch: Really great to see pre-deployment AI risk evals like this starting to happen
🐦🔗: https://n.respublicae.eu/lugaricano/status/1635877217589932033
RT @kearney_melissa: Twitter got out ahead of me on this one…
Confirming that I have a book coming out this fall!
The Two-Parent Privilege will be available on September 18.
You can pre-order now from @uchicagopress:
https://press.uchicago.edu/ucp/books/book/chicago/T/bo205550079.html.
🐦🔗: https://n.respublicae.eu/lugaricano/status/1635796341845815296
Unbelievable.
RT @JonErlichman: Today, GPT-4 instantly turned a hand drawn sketch into a working website:
🐦🔗: https://n.respublicae.eu/lugaricano/status/1635789109649362945
Unofficial automated mirror. No copyright asserted. ∎ Economist. Back at LSE as a Professor at @LSEPublicPolicy Summer 2023. Non-resident Fellow @bruegel_org. Recovering MEP. Currently @ChicagoBooth.
Joined Apr 2022
