Causes and Counterfactuals of Bank Failures Todd Moses · Follow Published in DataDrivenInvestor · 7 min read · 17 hours ago 17 hours ago -- ShareBanks, insurance companies, and even the criminal justice system suffer significantly from the phenomenon of noise. Noise represents each individual’s understanding of the facts [Kahneman et al. For example, in a competitive situation, the best judgments will be rewarded [Kahneman et al. According to the FDIC, nearly $8 trillion of bank deposits were uninsured at the end of 2022. System NoiseBy exercising it, humans gain confidence in their judgment [Kahneman et al…

Source: Wall Street Journal January 14, 2024 06:19 UTC