trust Archives - Eve Poole

Rebuilding Trust after the Crunch in Credit

By | Business | No Comments

I recently gave a talk about my research to the LSE’s Hayek Society. Our discussion ranged widely, inevitably majoring on the current economic climate. I suppose once the rather smug recriminations raining down through the media evaporate all we really want to know is: what next? What is the most effective and sustainable balance between private enterprise and public intervention, and how can we find it? Read More

Schooled in Scepticism

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So what went wrong? Liquidity. Why? Exposure to sub-prime assets through complex financial instruments designed to reduce risk made banks chary of lending to each other. The knock-on effect of this was a collapse in confidence, as signalled through stock market indices. Self-righteous hindsight bemoans capital adequacy – which might have increased liquidity – and the hubris that led to over confidence in secularisation. But schadenfreude won’t restore confidence. Read More