In this article, I explain why those who warn that the risk of a banking crisis is due to commercial bank behaviour are mistaken. I should point out that during currency collapses, adroit commercial banks do survive — Deutsche Bank survived two currency collapses, the first in the early twenties, and the second in the late 1940s.
It is in government agencies, particularly their central banks where the real risks lie.
On Saturday, Jamie Dimon said something interesting, tweeted by the Financial Times:
