April Fools

Brad DeLong has a long post how to handle financial crises where he states that the capitalization of financial intermediaries drives their demand for risk assets. If they are well capitalized, they are happy to take on risk (because they don't fear a bank run), and if they are poorly capitalized, they will not want to take on as much risk (because they want to avoid a bank run). Of course, if we ditch the fractional reserve system, and maturity mismatch, we do away with bank runs altogether, bu