Friday, September 3, 2010
Where is Mary Poppins When You Need Her?
One of the classic movie moments of collectively irrational behavior is a run on a bank in Mary Poppins. And I always thing of it when I see any other banking crisis like the one in Afghanistan. In the movie, a kid seeking his money back after not being pleased by the lending practices triggers a panic. In Afghanistan, a bank that has been poorly administered and apparently tied to Karzai is having problemos. And in a brief conversation at the APSA meeting with an expert on Afghanistan, the bank run may be more of a bank theft. Oy. Too big to fail? No. Is Afghanistan too important to fail? I am having my doubts.