handled well? what was wrong with it? >> well, i think in 2008 we were dealing with a situation potentially spinning out of control and so we threw a lot of money at it. we were flying blind. we didn't have a playbook. i didn't really like what we did then but i at least understood it better. in 2008 we did have a stable financial system. i am a rip the band aid off kind of person. i think that's when we should have started imposing some discipline at least for sick institutions, making them sell their toxic assets that would have given them a realistic mark. that continues to be a problem with the bank balance sheets. a lot of the assets are created at an inflated value. if you prop the bank up and leave all the bad assets there, what do they do? they nurse their balance sheets. when you get into a business cycle you want a healthy institution willing to go in there and take some risks and to lend. sick banks with a lot of bad assets just don't do that. there was the moral hazard
Related Keywords
Lot , Money , It , Out Of Control , Playbook , Situation , Flying Blind , 2008 , Kind , Person , System , Institutions , Discipline , Band Aid , Least , Problem , Assets , Value , Toxic Assets , Bank , Bank Balance Sheets , Mark , Risks , Banks , Business Cycle , Moral Hazard Problem , Institution , Balance Sheets ,
vimarsana.com © 2020. All Rights Reserved.