AEI: What is happening with bank commercial real estate lending today is part of a long-term process in which the bank intermediation system — where a bank is both a borrower and a lender — is gradually being displaced by the agency intermediation system that is common in the capital markets. In an agency intermediation system, the intermediary between a borrower and a lender is a broker instead of a principal.
Peter Wallison is talking about changes in the banking industry, and hints that the banking network will spiral to nothing under the Dodd-Frank load. He is likely right, Dodd-Frank and Obamacare, spiral away.
Banker Bot does not care
Banker bot is always optimum in its yield curve, If you want banker bot to talk Dodd-Frank, you are going to need a Dodd-Frank coin, and a Dodd-Frank bet. The bot will bet the next Dodd-Frank cost, letting bankers hedge. We just have to pick a source for Dodd-Frank costs. What is a good proxy for Dodd-Frank costs? The value of RRP deposits at the Fed, since that business is designed to beat Dodd-Frank.
Omigod! What can the regulators do?
Still working on that dunno.
Omigod! What can the regulators do?
Still working on that dunno.
No comments:
Post a Comment