Mises Daily
Author:
Frank Shostak
Online Publish Date:
of the FIH is that, during good times, banks and other intermediaries strive to innovate with regard to the assets they acquire and the liabilities they market. of debts”) try to lure investors to buy the debt by means of sophisticated innovations. The chase for making more profits causes players in financial markets to bank, i.e., the Federal Reserve’s monetary policies. It is the loose monetary policy of the Fed between December 2000 and June 2004 that laid the foundation for