Insights for Navigating an Uncertain World
“Alas, regulators and central bankers have a habit of lying ‘when it gets serious’ and it has rarely been as serious as it is right now. So those skeptical to allocate cash to an asset that is here today but may be gone tomorrow may be wise to wait and see how the AT1 tranches is treated in the next European bank failure. Luckily, with the ECB hiking 50bps last week and set to hike even more next, they won’t have long to wait.”
Mark Skidmore is Professor of Economics at Michigan State University where he holds the Morris Chair in State and Local Government Finance and Policy. His research focuses on topics in public finance, regional economics, and the economics of natural disasters. Mark created the Lighthouse Economics website and blog to share economic research and information relevant for navigating tumultuous times. View more posts
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