Is there a way towards economic serenity?
March 29, 2023All the economic parishes agree on the fact that too high debts are harmful. However, they diverge when the profile of the debtor is considered because, while the Austrian school is primarily concerned with public debts, the neo-Keynesians attach much more importance to private sector debts. The classics are indeed indifferent to the debts of…
Is our money still safe in a bank?
March 27, 2023In the CS rescue operation, the Confederation, the SNB and the regulator (Finma) took a decision with serious consequences: to sacrifice Tier 1 bonds, nicknamed “CoCo bonds” or “contingent convertible bonds”. These are hybrid securities between capital and debt, of better quality and which take precedence over equities, a sort of first mortgage. The authorities…