Is private credit a financial-stability menace, or just banking in nicer clothes? Two excellent new JEP papers suggest: it is important, growing, useful, and -- as I read it -- reasonably safe despite frothy markets these days.
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But isn’t this just banking—minus the bank? Matvos, Piskorski & Seru: not currently. Private-credit funds are 65–80% equity financed, have little maturity mismatch, and diversified portfolios. That is not the classic bank-run recipe.
aeaweb.org/articles?id=10…
aeaweb.org/articles?id=10…
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Still, “not a bank” is not a free pass. Both papers point to watching for: opaque valuations, liquidity provision, links to banks and PE, and who ultimately absorbs losses. Boring plumbing—until it isn’t. But so far, it appears that private credit has moved risk out of banks.
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I care about affordability & our planet. We need much more reform than BAAJA, but it’s a good start.
“… under our status quo laws, a transmission line that started permitting in 2006 to connect wind power in New Mexico to customers in California was finally completed *in 2026.*”
“… under our status quo laws, a transmission line that started permitting in 2006 to connect wind power in New Mexico to customers in California was finally completed *in 2026.*”
Stopping climate change requires massive increases in clean energy by the 2040s.
That will take electrical transmission lines connecting places with the best sun, wind, and geothermal to population centers.
But under our status quo laws, a transmission line that started onnect wind power in New Mexico to customers in California was finally completed *in 2026.*
17 years of permitting and lawsuits, 3 more years to build. And that was under the federal government's "fast-track" process.
If we don't pass BAAJA, the clean power infrastructure we start today won't get done until it's too late. If we pass BAAJA now, it'll be done during the next administration.
If we can't stop climate change because we have to preserve every lawsuit, paperwork and procedure, we've lost the plot.
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Jonathan A. Parker retweeted
Peter Thiel recently said that it’s “not acceptable to be wildly successful” in Europe. But Sweden has more billionaires per capita than the US.
New piece for @ArguablyMag on how it combines a dynamic market economy and a strong social model. arguably.uk/p/sweden-shoul…
New piece for @ArguablyMag on how it combines a dynamic market economy and a strong social model. arguably.uk/p/sweden-shoul…
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Thank you to those who serve and served, and to the parents and loved ones of those who serve and served.
We have a huge moral responsibility in what we ask of you.
We have a huge moral responsibility in what we ask of you.
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Great thread with a tale for you to share with your friends and loved ones over Thanksgiving dinner!
Competing turkey processors shared detailed price, quantity, and cost data with each other through a common data provider. When the provider left the market, the relative prices of participants fell by 5% in the following year. Were they colluding?
A 🧵 about my JMP: 1/
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Bipartisan deregulation. So happy to see BAAJA advancing. I feel like I’m watching my generations’s TRA86.
Good for the environmentalists, bad for conservationists. Good for lowering the cost of living, and the future of America!
Good for the environmentalists, bad for conservationists. Good for lowering the cost of living, and the future of America!
Any project that’s illegal today will also be illegal after passage. BAAJA just makes it faster to come to that decision (not to mention requiring data centers to pay much higher costs).
This is a strong deal that’s been made even better after the managers amendment.
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Jonathan A. Parker retweeted
Pour une grande primaire ouverte en amont de l'élection présidentielle, afin de bloquer la route aux extrêmes. Celle-ci sélectionnerait non pas un mais *deux* candidats, une garantie de pluralité. Notre tribune dans @lemondefr avec @PAghion et @VinPons. lemonde.fr/idees/article/…
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Jonathan A. Parker retweeted
Government imposed policy costs make up 57% of the clearing price of a new flat in London and 42% of a new home in the Home Counties.
Despite a big housing shortage and positive planning reforms, new home starts in England are declining from 182,000 in 2022 to under 125,000 last conomic context has worsened with build cost inflation and high interest rates, the Government is imposing more burdens on new homes, not fewer.
Taxes, levies, planning, and mandates add over £440,000 to the cost of delivering a home in London and nearly £225,000 nearby, with several of these imposed recently like the Second Staircase, Future Homes Standard, Building Safety Levy, Biodiversity Net Gain and Residential Property Developer Tax.
Individually these may be justified, but together they are making new homes unviable.
As a result, large developers are buying less land and small builders are going out of business; nearly 4,000 construction firms went bust just last year.
If we want to build more homes, we should be easing the burdens on them, not adding more.
Making housebuilding viable again is the most important issue in housing policy and my co-author, Edward Donovan, has completed excellent modelling showing how big the challenge is.
Read the full report: cps.org.uk/wp-content/upl…
And simulate what changing the policies does with Edward's modelling here: easing-the-burdens.cps.org.uk
Despite a big housing shortage and positive planning reforms, new home starts in England are declining from 182,000 in 2022 to under 125,000 last conomic context has worsened with build cost inflation and high interest rates, the Government is imposing more burdens on new homes, not fewer.
Taxes, levies, planning, and mandates add over £440,000 to the cost of delivering a home in London and nearly £225,000 nearby, with several of these imposed recently like the Second Staircase, Future Homes Standard, Building Safety Levy, Biodiversity Net Gain and Residential Property Developer Tax.
Individually these may be justified, but together they are making new homes unviable.
As a result, large developers are buying less land and small builders are going out of business; nearly 4,000 construction firms went bust just last year.
If we want to build more homes, we should be easing the burdens on them, not adding more.
Making housebuilding viable again is the most important issue in housing policy and my co-author, Edward Donovan, has completed excellent modelling showing how big the challenge is.
Read the full report: cps.org.uk/wp-content/upl…
And simulate what changing the policies does with Edward's modelling here: easing-the-burdens.cps.org.uk
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It’s too bad that no Harvard graduate student had the choice to go to any other school.
Harvard PhD students are on strike, postdocs and lecturers will probably join next week.
Harvard PhD students obviously enjoy great privilege, but this privilege is not reflected in our wages.
Here is a comparison to my "alma mater". There is room to move.
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Since most of my followers are finance and macro, I’m highlighting the JEP symposium on private credit (in another thread) and, for empirical work, a crystal clear guide to the Bayesian bootstrap. Imma bootstrapping everything now.
aeaweb.org/atypon.php?ret…
aeaweb.org/atypon.php?ret…
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Jonathan A. Parker retweeted
Grateful to our authors and my co-editors @TimothyTTaylor @ProfJAParker and Jeff Kling for all of the work that went into this issue of the Journal of Economic Perspectives.
Open access as always: aeaweb.org/issues/868
Open access as always: aeaweb.org/issues/868
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Hmmmm
So Trump didn’t steal the elections? Now watch as all those fantasies about ICE and “suppression” disappear.
on.wsj.com/4fc1V0J
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To be clear, if I was @WSJOpinion I would just wait until after Jan 6 before saying “I told you so”
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Jonathan A. Parker retweeted
🚨New paper w @ZLiscow & @heidilwilliams_
+ WaPo op-ed
In 1947, Congress gave interstate gas (but not oil) pipelines federal eminent domain, so states couldn’t block construction. Gas line construction took off.
Monday, the Senate votes on a similar reform for power lines🧵
+ WaPo op-ed
In 1947, Congress gave interstate gas (but not oil) pipelines federal eminent domain, so states couldn’t block construction. Gas line construction took off.
Monday, the Senate votes on a similar reform for power lines🧵
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It’s out!! I hope you all don’t crash the server rushing to download.
Fall 2026 Journal of Economic Perspectives Freely Available Online
conversableeconomist.com/2026/11/06/fal…
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