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      • 2.

        cExternaility aster title style

  • Fire-sale Externality too big to fail

    • Own maturity mismatch affects fire-sale price of others

  • Network Externality too interconnected to fail

    • Take on opaque connected position adversely affects others

  • Response to current regulation “hang on to others and take positions that drag others down when you are in trouble” (maximize bailout probability)

    • Become big

    • Become interconnected

      • e.

        g. CDS contracts include features that cause large ripple effects

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