Credit Crunch

  • If everyone else is doing it – it must be all right. Who wants to be left out?
  • If you spread the risk among a large number of people that reduces the risk. Probably true but not if all the people fall into the same bracket (sub-prime borrowers). That is no longer a diversified risk.
  • A mortgage is usually a very safe loan because there is the real value of the house that is being mortgaged. But if the mortgage is securitised and fractionated, no one knows who owns which assets.
  • Once a market starts to decline in value there is an incentive to drive it further down in order to buy at a lower level in a market that is sure to recover one day.
  • Bonuses and incentives for short term performance tend to ignore long term risky behaviour.
    • There are many more factors.]]>

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    Testimonial | Lorraine Metcalf, Quantexa

    April 8, 2024 No Comments

    We talk to Lorraine Metcalf (Chief People Officer): How Holst supports Quantexa to build effective workplace culture. https://youtu.be/lDV0qTXzgcg We talk to Lorraine

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