- Volcker
- cause of financial meltdown: not prop trading. not hedge funds.
no doc loans (lending without doc)
went into securitization
underwriter paid to underwrite, (keep churing it out) sales to sell
inventory build - couldn't get rid of it
teaser rates in subprime lending
low interest rates - some other complacency
retail investors: will get hurt when rates rise in FI mutual fund
where are real prices? bought 1tn of mortgages - don't know real interest rates
bank of england stopped QE
ECB stops program at the end of year - problems with Greece
congress doesn't like the Fed being the market maker
start to unwind reserves
400bn up to 2tn in reserves
allow rates to normalize - what is the fair level?
No comments:
Post a Comment