SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : US Economic Trend Analysis
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: gpowell who wrote (52)5/29/2008 12:35:58 PM
From: gpowell of 97
 
As most investors already know, the housing retraction did produce secondary effects in credit markets. But as is evident from the charts housing prices were not driven to extraordinary levels by "loose" credit - although we can say that "loose" credit helped "grease" the way.

The secondary effects were/are the product of risk concentration in the mortgage backed security market. Simply put, without implied government support the MBS market would have spread risk across a multitude of buyers and likely would have developed bank monitoring mechanisms so as to avoid the principle agent problem which developed when Banks found it profitable to abandon their traditional role of risk assessors.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News