It seems the "unknowable" reflects the fact that this market is to a large extent beyond regulator's purview--the size and aggregate details of loan terms, as well as who the investors are and their degree of individual exposure. We have no idea if the examples cited by people expressing opinions on systemic risk are representative of the market--especially given rapid growth. Like compulsive gamblers on a winning streak, it's not hard to imagine investment entities getting carried away and being tempted to go "all in". It seems like efforts to improve transparency, particularly regarding the investments and exposure of entities supporting the common good, like banks, pension funds, public agencies and the like, would help.
The systemic risks, to financial institutions in general, are of concern. Mostly because they are unknowable, from sitting here.
Statistics: Posted by desiderium — Sat Dec 28, 2024 2:38 pm — Replies 23 — Views 2145