There are two major problems with collateralized interbank lending. The first is that there’s no reason to believe that collateral will function to protect the lender in the event that a major ban…| Synthetic Assets
After an outpouring of excessive and unwarranted humility, TED gave a nice critique of some of the points in my previous post, which I will summarize (probably inaccurately) as (i) Can a system of…| Synthetic Assets