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Views on non-Normal markets [72]

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Bullet points include: Impact of leverage unwinds may not fall fully onto shareholders. Solvency put option caps losses to shareholders in the event of default. 2007-2009 credit crisis depressingly ‘conventional’, in some respects. Too many individual failures (especially of large institutions) can create systemic risks and instabilities. Government intervention to maintain financial stability. Interconnectedness of economy. Bail-outs/guarantees from state or deposit insurance arrangements. Costs externalised (but maybe so too are some of the benefits?)

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