Yeah, the investors (hedge funds, pe) don't have to bear the downside of their investment but they get to keep all the upside. Which gives them an incentive to be really risky with their investments.
The Fed has been hesitant to make them face the downside of their decisions, and that needs to slowly change (without causing a panic/crash)
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Yeah, the investors (hedge funds, pe) don't have to bear the downside of their investment but they get to keep all the upside. Which gives them an incentive to be really risky with their investments.
The Fed has been hesitant to make them face the downside of their decisions, and that needs to slowly change (without causing a panic/crash)