Re:Circulating in China’s Financial System: More Than $200B ...
by mlyle on Thursday August 08, 2019 @11:33AM
(#20645471)
It's not an awful idea, all in all.
But it's also rational to worry that it increases overall financial system leverage and that poorly-regulated pseudo-securitized debt could sustain financial bubbles and lead to worse collapses. It also creates a rather difficult problem for a credit manager being asked to accept payment in third-party IOUs.
The instruments we point at as big contributors to the 2008 housing market collapse were better regulated, rated, and more readily exchangeable than CABs.
But it's also rational to worry that it increases overall financial system leverage and that poorly-regulated pseudo-securitized debt could sustain financial bubbles and lead to worse collapses. It also creates a rather difficult problem for a credit manager being asked to accept payment in third-party IOUs.
The instruments we point at as big contributors to the 2008 housing market collapse were better regulated, rated, and more readily exchangeable than CABs.