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The new boom in natural gas from shale has changed the energy economy of the United States. But there's another giant reservoir of natural gas that lies under the ocean floor that, theoretically, could dwarf the shale boom.

No one had tapped this gas from the seabed until this week, when Japanese engineers pulled some up through a well from under the Pacific. The gas at issue here is called methane hydrate. Methane is natural gas; hydrate means there's water in it. In this case, the molecules of gas are trapped inside a sort of cage of water molecules.

Few people have actually seen methane hydrates, but Ann Cook, a geophysicist at Ohio State University, is one of the few.

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"It manifests itself in these instruments because they allow the banks to use all kinds of tricks to borrow more and to hide all the risk in borrowing that happens. And so they can manipulate the regulation and they can actually be riskier than they appear, and all of this is just living on the edge and not being prepared enough, with your own money, indeed, to various eventualities, to what might happen."

On new regulations and banks' resistance to carrying more equity

"So the requirements now, which the regulators will tell you are so tough, actually still allow the banks to use borrowed money for 97 percent of their investment and have just 3 percent equity, so even if it's a little bit, just a little bit more of a buffer, it's still not a healthy place to be. ...

"If they find that they cannot live with much more equity, then we have to wonder about their business model and the viability of having such a banking system that possibly is quite bloated and is distorting the rest of the economy. If the only way they can live is on subsidized borrowing, then we have to be concerned about why that is."

On what would make the banking system more stable

“ The banks that cannot raise new equity are showing us a great weakness. ... The time to take care of that is now, and not in a crisis.

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There's a diplomatic spat brewing between India and Italy over the trial of two Italian marines charged with killing two Indian fishermen last year.

India's Supreme Court on Thursday ordered the Italian ambassador not to leave the country after Rome refused to let the marines return to India to stand trial for the killings. The court had earlier allowed the marines to return to Italy to vote in last month's national elections after Ambassador Daniele Mancini assured Indian authorities that they would return by March 22 to stand trial. Earlier this week, the Italian Ministry of Foreign Affairs said that won't happen. The Indian court has given Mancini until March 18 to respond.

Here's the background to the story, from The Associated Press:

"The marines, Massimilian Latorre and Salvatore Girone, were part of a military security team aboard a cargo ship when they opened fire on a fishing boat in February last year, killing the two fishermen. The marines said they mistook the boat for a pirate craft.

"Italy maintains that the shooting occurred in international waters and that Rome should have jurisdiction. India says the ship was in Indian territorial waters."