The Economist (August 20)
2016/ 08/ 22 by jd in Global News
“What are the most dysfunctional parts of the global financial system?” While here are many candidates, “if sheer size is your yardstick, nothing beats America’s housing market.” At $26 trillion, “it is the world’s largest asset class” and “the slab of mortgage debt lurking beneath it is the planet’s biggest concentration of financial risk.” This wasn’t fully sanitized in the wake of the financial crisis. “Vast, nationalised, unprofitable and undercapitalised, it remains a menace to the world’s biggest economy.”
Tags: Asset class, Dysfunctional, Financial risk, Global financial system, Housing market, Mortgage debt, Size, U.S.
