“As predicted, the plummeting prices of bail-in securities have been interpreted by the wider markets as the best indicator of the trouble banks are in, forcing some to cut back their exposure to the banks in a self-fulfilling prophesy. Investor losses and shock have triggered wider risk aversion and have led to the sale of other bail-in securities and risk assets like equities. Bail-in securities are not only fools’ gold, but they bring forward a crisis, not prevent it. Old-fashioned remedies, such as extra equity capital at banks and less maturity mismatches across the financial sector, would be more effective at protecting the economy and the taxpayer.”