19 Oct 2018 home
In today's NY Times (October 29), Matt Phillips warns of risky profit-seeking not unlike that which produced the recession of 2008. In 2008 it was collateralized debt obligations, CDOs. Now its collateralized loan obligations, CLOs — underlying loans going to high-risk companies.
Such loans to companies with junk-level credit ratings hit a record of more than $550 billion last year, eclipsing levels in the last years before the financial panic.
Someone worries about weakened Frank-Dodd regulations that allow the growth of this development. Federal Reserve policymakers have spoken of possible risks to the financial system. Someone else speaks of exploding deficits from the Republican tax cut scam and a misguided trade war as sowing the seeds of the next economic collapse, and sarcastically he thanks the Republicans.
CONTINUE READING: Republicans: the want to raise your taxes
Copyright © 2018 by Frank E. Smitha. All rights reserved.