In this paper, we examine the influence of information rigidities concerning the net worth of banks on the real economy over time. In a first part, we show empirically that expectations about the net earnings of banks (as growth of net worth) are truly biased, particularly during the financial...

"Taming the Street tells the epic story of the FDR's battle to regulate Wall Street for the very first time in the wake of the Crash of 1929 that ushered in the Great Depression. Deeply reported and vividly told, it provides a trip back to a time when the power of concentrated wealth in America...