Monday, August 6, 2007

factors lead easy money

--financial innovations: securitization --LTCM made asia central banks to build up reserve and invest in safe places like U.S Treasury --Tech bust made U.S central bank to cut interest rate to 1% --easy money are funneled into banks which finally goes to housing market because its high return and to lendings to hege funds --now it is a revulsion...

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