The man who avoided a depression by intelligently limiting monetary expansion in the early 80's is now all for continuing easy credit into today's problem of too much easy money. I think our economists in charge are drastically overthinking this. Let this recession come and go, but please don't GIVE us a depression!
Volker--why is it that the derivatives contracts where allowed to be written in the first place? We don't allow 2 year olds to play with atom bombs do we?
Valuations do matter. It's just that people are afraid these investment vehicles are harboring toxic DERIVATIVES granting the counterparties the entire value of the collateral, thereby fleecing the pidgeons and consigning them to penury.
The man who avoided a depression by intelligently limiting monetary expansion in the early 80's is now all for continuing easy credit into today's problem of too much easy money. I think our economists in charge are drastically overthinking this. Let this recession come and go, but please don't GIVE us a depression!
burnt2acrisp 3 years ago
Volker--why is it that the derivatives contracts where allowed to be written in the first place? We don't allow 2 year olds to play with atom bombs do we?
jburt56 3 years ago
Valuations do matter. It's just that people are afraid these investment vehicles are harboring toxic DERIVATIVES granting the counterparties the entire value of the collateral, thereby fleecing the pidgeons and consigning them to penury.
jburt56 3 years ago