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The magnitude of the political shock due to the war is quite clear in Figure 14. Most vexing in the short run are the inevitable politics that swirl around issues such as the physical location of the central bank
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I explained that we had fashioned a plan we believed the market would accept, enabling us to avoid a chain reaction of failures. There were four trading days left before the streets around the New York Stock Exchange would be choked with death and debris. Other sweeteners included raising FDIC deposit insurance limits and addressing mark-to-market accounting in some way. See the box on the following page to see how they add up.
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