Categorized | economy

The experts speak

This morning, I re-read Moorad Choudhry’s Introduction to Credit Derivatives from 2004, and came across this gem:

This isolation of credit [using credit derivatives] has improved the efficiency of the capital markets, because market participants can now separate the functions of credit origination and credit risk-bearing. Banks have been able to spread their credit risk exposure across the financial system, which arguably reduces systemic risk. They also improve market transparency by making it possible to price specific types of credit risk better.

All three of these assertions have been resoundingly falsified in the last year. They are the business equivalent of believing the world is flat.

Be Sociable, Share!

Leave a Reply

Shoestring Book Reviews

Shoestring Venture Reviews
Richard Hooker on Jim Blasingame

Shoestring Fans and Followers



Business Book: How to Start a Business

Shoestring Book

Shoestring Venture in iTunes Store

Shoestring Venture - Steve Monas & Richard Hooker

Shoestring Kindle Version # 1 for e-Commerce, # 1 for Small Business, # 1 for Startup 99 cents

Business Book – Shoestring Venture: The Startup Bible

Shoestring Book Reviews

Shoestring Venture Reviews

Invesp landing page optimization
Powered By Invesp
Wikio - Top Blogs - Business