Sub-Prime! de la Dehesa Speaks Up!

Guillermo de la Dehesa has written a thoughtful piece in VoxEU regarding future possibilities in regulation.

He states: To avoid future crises

  • all mortgage originators should be regulated,
  • banks should have to retain their “equity” or first loss risk,
  • securitizers should be more transparent and produce more standardized products
  • the rating agencies should be more transparent and independent,
  • Europe’s coordination failure among national supervisors should be fixed.

It’s a good article, worthy of a more thoughtful response than I can currently prepare. I’ll try to update over the weekend.

Update: Naked Capitalism has reported another essay.

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