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The end of crises: can we reach financial stability?

The Great Recession seems to be over: unemployment is low, the Dutch CPB has noticed GDP-growth rates that were previously thought to be unattainable and the Dutch government is finally running surpluses. The financial crisis is over.
And the financial crisis is not only over, it is ought to never come back. In 2013, Basel III was introduced, with a whole new set of regulations and capital buffers. Those should shield banks from shocks and should, in addition, shield the financial system from not only shocks to banks themselves, but the system as a whole. One could argue that the Great Recession showed us the importance of specific types of risks and helped regulators improve regulation, covering for the risks they previously did not know they existed.
The story as sketched above is a rather positive one: each crisis is costly, but also has a benefit. Each crisis has its pains, but also learns us new things about how financial systems function and how we can better prevent crises next time.
But the next question is: don’t we forget something? Something that cannot be grasped in rules or in numbers, but plays a very important role.
It’s optimism, culture: the propensity to take risks – really believing that it’ll be all right, while making old mistakes again because you forgot how bad things could be.
The period prior to the crisis, for example, was a period known as the Great Moderation: the years after the collapse of the Internet bubble. Global markets were growing and financial markets were stable. We know how it ended, and I would like to argue here that it was exactly the moderation that relaxed policymakers, bank regulators and those responsible for risk policy in the financial world. Like financial crises show us risks we previously did not know existed, financial stability makes people in financial world forget how large the risks possibly can be. There are, obviously, a number of other causes that lead to much more risk-taking by financial institutions. The point I want to make, however, is this: we should be prepared for new financial crises and even consider the possibility that new regulations make us feel more safe, but that this sense of security is misplaced and only leads us to take more risks.


Mister Moneyman: our Treasurer Jeroen!

With this article, I want to show some of the tasks the treasurer of our study association has on a daily basis. The day starts in the early morning with checking mails like all the other board members. My mail looks a little different from the others. It mostly consists of invoices, which I need to pay. This can be for flyers for the promotion of our events or for the beers that we drank the evening before in Café the Philip. If I see an email containing an invoice, I always print the invoices right away and put them in my ‘need to be paid’ folder on my desk.


Explosion of Esports

(Author’s note: as each game and following are much different from each other, majority of the content in this article follows the game I follow the most: Dota2.)

Esports, standing for exactly what you might think: electronic sports, encompass a wide array of games where highly skilled players go against each other for constantly rising price pools. Those games in most cases are team-based where just like in another sport team cooperation and individual ability are vital. Tournaments for some of the oldest games have been going for over 15 years now, but it is only in recent years the scene has moved to more of a mainstream, and stigma of playing games began to fade away as huge winnings and outside support started raising.


Vice-Chairman Desiré, tell us about your year!

After the blog articles of Renee as Chairman and Job as External Affairs Officer, it is my turn to shed some light on what I do as the Vice-Chairman of Asset | Economics. Before I started this year I had a lot of questions about what this function actually included, and whether this would be a good fit for me. You might have the same questions as I did then. Continue reading to find out more about what I do on a daily basis.

Valve News Network

Interview with a Youtuber: Tyler McVicker (VNN)

Tyler McVicker is the founder and solo producer of the YouTube channel Valve News Network (VNN). He currently also is a fulltime college student doing his major in Journalism. I had the opportunity to sit down with him, and talk for over an hour about himself, the channel and Valve.


Mining digs deeper and deeper into our energy consumption.

In the recent months of crypto-currency development, one key aspect has been on the rise: the energy consumption during the mining and transaction process, so much so that there was an energy consumption index made for Bitcoin. The number of miners and their energy usage was on the rise as crypto-currencies moved from obscure payment method to Goldman Sachs creating services around them. This in addition to many others concerns brings up a lot of questions regarding contemporary attitudes to the environment. Infrastructure of block-chain can be used in innovative ways for new approaches to modern problems but can the problem itself offer a solution to rising energy consumption?