It's no different from the GFC, where the risk (of those mortgages) are mis-priced, and in the end, someone is left holding the bag.
A functioning market to redistribute risk needs transparent pricing, and proper bankruptcy (so in other words, the risk taker must not be bailed out, even if it hurts in the short term).
It's no different from the GFC, where the risk (of those mortgages) are mis-priced, and in the end, someone is left holding the bag.
A functioning market to redistribute risk needs transparent pricing, and proper bankruptcy (so in other words, the risk taker must not be bailed out, even if it hurts in the short term).