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It is no wonder that bank capital is regulated. When borrowing and lending is profitable, it is tempting for banks to scale up their operations and to borrow and lend too much in relation to their capital, in effect reducing the effectiveness of the potential capital cushion. ↗
Every summer my husband and I pack our suitcases, load our kids into the car, and drive from tense, crowded New York City to my family's cottage in Maine. It's on an island, with stretches of sea and sandy beaches, rocky coasts, and pine trees. We barbecue, swim, lie around, and try to do nothing. ↗