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Bookmark and ShareSam Thompson is a researcher and a consultant at nef‘s centre for well-being.

From Michael Lewis (via Dani Rodrik), everything you need to know about the Icelandic banking fiasco, explained with the help of a handy animal analogy.

You have a dog, and I have a cat. We agree that they are each worth a billion dollars. You sell me the dog for a billion, and I sell you the cat for a billion. Now we are no longer pet owners, but Icelandic banks, with a billion dollars in new assets.

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nef employees blog in their personal capacity. The opinions expressed here do not necessarily reflect those of the new economics foundation.