When Trust Is Lost, A Nation's Ability

Even Though Some Down Payments Are Borrowed, It Would Take A Large, And Historically Most Unusual, Fall In Home Prices To Wipe Out A Significant Part Of Home Equity. Many Of Those Who Purchased Their Residence More Than A Year Ago Have Equity Buffers In Their Homes Adequate To Withstand Any Price Decline Other Than A Very Deep One.

By Far The Most Significant Event In Finance During The Past Decade Has Been The Extraordinary Development And Expansion Of Financial Derivatives.

Given Our Inevitably Incomplete Knowledge About Key Structural Aspects Of Our Ever-changing Economy And The Sometimes Asymmetric Costs Or Benefits Of Particular Outcomes, A Central Bank... Need To Consider Not Only The Most Likely Future Path For The Economy But Also The Distribution Of Possible Outcomes About That Path. They Then Need To Reach A Judgment About The Probabilities, Costs, And Benefits Of The Various Possible Outcomes Under Alternative Choices For Policy.

[republicans] Swapped Principle For Power. They Ended Up With Neither. They Deserved To Lose.

Indeed, Better Risk Management May Be The Only Truly Necessary Element Of Success In Banking.