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Are we giving “too big to fail” banks $83 billion a year?

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Great information from USA

Policy Interns

The short answer is: maybe.

On Wednesday, during the Senate Banking Committee hearing, Senator Elizabeth Warren grilled Federal Reserve Chairman Ben Bernanke on the $83 billion implicit subsidy that big banks receive from low interest rates. That night, Fox Business News’ Gerri Wilson misquoted the figure, expressing outrage over the “$83 trillion dollars, you know, I can’t get over that number.”

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Both women were alluding to the $83 billion figure calculated by the Bloomberg View’s editorial team last week. This “too big to fail” (TBTF) subsidy refers to the advantage that big banks receive in borrowing because creditors assume the government will bail them out should they fail.

As the debate over how to address risk in the financial system continues, the question over the existence and the size of this subsidy will doubtlessly be revisited time and time again. Understanding the rationale behind these figures is important for informing…

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Texting leads the pack..

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Survey results infographic by Rob on “Total Telecom the Editor’s Cut” show that Text and Photo’s are the most used applications by smartphone users – I guess we knew that anyway. The recent acquisition by Facebook of Instagram,  a Photo based application looks to support the survey. Pinterest certainly supports a “photo shot” collaboration and a great video on the stats around them is interesting on http://www.digitalbuzzblog.com .  A great article by Om Malik at Gigaom is a smart read. Business and consumers are now communicating more effectively in a collaborative sense with social media applications as reported by blog.reachcast.com . The smartphone revolution is building tremendous momentum discussed in detail at blog.reachlocal.com giving mobile statistics that are impacting small business enterprises . Jason Spero , Head of Mobile Ads (America’s) at Google provides a compelling presentation.

  

Bacteria running a muck at ATM’s

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A recent survey reported on  stuff.co.nz has highlighted that ATM’s ( the hole in the wall ) are places that inadvertently habour contagious bacteria. This could be extended to any card based payment system’s in general in my opinion where the use of supermarket trollies, baskets, debit/creditcards and even good old cash coin and notes are hotspots so to speak as well. Cash has always been King however where mobile payments are implemented the ability to transact independently would be more healthy for you