Has the Fed Aided or Saved the “Collapse of Finance”?

An article recently appeared in the Economist, titled the Collapse of Finance.  Here, the Economist suggests that, at best, the current financial crisis represents a collapse of modern financial ideology, and in particular, a failure of Western Markets to manage the surge of sophisticated financial instruments and their access by less sophisticated nations (of course, […]

Market Outlook: Ignorance or Insight?

There is no doubt that U.S. banks and more importantly, non-banks, have long been pursuing high risk practices in their approach to not only subprime, but also prime lending in the mortgage space. Loan structures that include low doc, no doc, I/O, low LTV, no down payment, etc. became rampant, particularly in more recent years […]