What a week it’s been in the markets. Find out what’s behind the recent financial crisis of the past few days, and what the credit woes could lead to. Greg Ip is U.S. Economics Editor for the Economist; Andrew Caplin is an Economics Professor at NYU.

Comments [6]
Who should we sacrifice in lieu of actual systemic reform?
What is wrong with one very simple regulation -- the old rule:
As to home mortgages, if you sell the mortgage, you keep the mortgage. (If you sell the bank, or division, you can sell all the paper, but the paper stays with the originating entity.) We say: as to home mortgages, we don't allow them to be securitized. PLEASE RESPOND.
This is a great show.
The gov't. has acted to "cleanse" the "toxic" debt from banks and other institutions. But (a) how does that help the bank, if it's already written off that bad debt, and
(b) what is the gov't. supposed to do with all that toxic debt?
Thanks.
Last year the 75 year old prohibition against short selling on a down tick was lifted, what effect did this have on short selling abuses?
What is the role of regulation and de-regulation?
Can your guest explain/define what NAKED short selling is and why the SEC this spring banned it for only 19 financial companies and let it lift?
What benefit does naked short selling provide to the US/Global economy (i.e., investment capital, credit, etc.) aside from creating fake products/profits that DO NOT EXIST?
Why is this practice legal and not 3-card monty?
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