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Haircuts— by Gary Gorton

A well written paper on origins of the Panic of 2007/8 —one which IMHO should be understood by more people
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docs.google.com In the case of our current crisis, the “depositers” are the high level investment entities, withdrawing their funds in response to a fear of insolvency. Gorton went into detail on his comparison in the paper and subsequent book: Slapped in the Face by the Invisible Hand: Banking and Panic …