tag:blogger.com,1999:blog-5713178645208582139.post798337511975457782..comments2024-03-17T03:26:42.785-05:00Comments on Macro Musings Blog: More on the Shortage of Safe AssetsDavid Beckworthhttp://www.blogger.com/profile/04577612979801459194noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-5713178645208582139.post-91642529700156017282012-01-01T23:02:59.941-06:002012-01-01T23:02:59.941-06:00Anonymous:
I don't know, but Anil Gupta's...Anonymous:<br /><br />I don't know, but Anil Gupta's answer looks plausible: regulatory arbitrage.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-11036577556060525712011-12-26T13:53:09.523-06:002011-12-26T13:53:09.523-06:00Socrates,
Anonymous, if risky assets were viewed ...Socrates,<br /><br />Anonymous, if risky assets were viewed no differently than safe assets then why did Wall Street transform them into AAA-rated assets?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-23832499336391313652011-12-26T12:02:16.221-06:002011-12-26T12:02:16.221-06:00I don't understand. You're pointing to a d...I don't understand. You're pointing to a declining supply in something. Fair enough. But how does that constitute a shortage? As supply falls and demand for safe assets rises, their price rises. And that is exactly what we've seen over the last few years, constantly rising US bond prices (as well as those of other safer sovereigns). Where is the problem here?JP Koninghttps://www.blogger.com/profile/02559687323828006535noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-52862912265742875262011-12-26T10:12:29.452-06:002011-12-26T10:12:29.452-06:00Safe assets can serve as collateral at close to th...Safe assets can serve as collateral at close to their face value. But risky assets can serve as collateral, too, only for loans of less than their face value. So why attribute such importance to the quantity of safe assets?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-86433830475873070352011-12-24T05:23:20.804-06:002011-12-24T05:23:20.804-06:00Do you think that the recent ECB LTRO can contrib...Do you think that the recent ECB LTRO can contribute in sucking safe assets away from the system?Anonymoushttps://www.blogger.com/profile/14377623855540455028noreply@blogger.com