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The big excess capacity problem that bedevils China is not getting any better.
Basically, it's a huge social insurance policy with a big excess.
If there is a big excess of cash sloshing around the economy, people will eventually use it to bid up prices.
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"The main cost is the loss of trade - we can still get insurance, but it's expensive and we have big excesses".
As with any insurance policy, taking on a bigger excess will reduce premiums.
As with other types of insurance, you could be able to cut your premiums by taking on a bigger excess.
Holders of more common, asset-based sukuk are likely to demand a bigger excess spread between the cash flowing into the SPV and the cash flowing out of it to them: the bigger this "reserve account", the greater the buffer protecting investors.
Others have begun offering customers the chance to opt for bigger excesses or to exclude certain conditions from their policy.
This was not just a dotcom phenomenon: by far the biggest excesses came in telecoms, where young companies such as WorldCom were rewarded handsomely by the stockmarket for building new networks almost without regard to underlying demand.
So, we should have had a recession — or, since we actually had one, a much longer and deeper recession — to "clean up" Wall Street's excesses; and if Wall Street went on to engage in much bigger excesses, well, boys will be boys, and it's really that foolish preoccupation with full employment that deserves the blame.
As the recession sparked by big bank excess grinds on, even the good news is pretty hard to swallow.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com