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links for 2007-11-17

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1 thought on “links for 2007-11-17”

  1. Ethan, on that PSD item: this is not exactly what the original study suggests. What it says is that by giving credit to those who would not otherwise qualify for a loan at the normal rate for such cases (200%, not 80%, which is there only to grab attention), it’s possible to prevent them from sinking even further, whereas the classical economic argument in such cases is that one shouldn’t be allowed access to excessive credit when things are already going downhill. So I am not sure that story has as much geopolitical development spin as you attach to it — the findings may be as true in the US :-)

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