07 12 2019 | by Victor Xing | Capital Markets
02 27 2019 | by Victor Xing | Economics
Common catalyst for progressive and conservative populism
12 09 2018 | by Victor Xing | Capital Markets
Kekselias performance review: 1.31% YTD total return
10 14 2018 | by Victor Xing | Capital Markets
Roundabout path in the snap-back of long-term bond yields
09 23 2018 | by Victor Xing | Central Banks
Calm before the storm as quantitative tightening looms
05 20 2018 | by Victor Xing | Central Banks
Alternative narrative on the natural rate of interest
01 07 2018 | by Victor Xing | Capital Markets
Flatter yield curve a symptom of ineffective tightening
12 04 2017 | by Victor Xing | Central Banks
Bond market term premium and wolves of Yellowstone
10 17 2017 | by Victor Xing | Capital Markets
How we learned to stop worrying and love the “fake markets”
09 20 2017 | by Victor Xing | Central Banks
QE’s distributional effects a rising political liability
10 22 2015 | by Victor Xing | Economics
Are bankers unfairly vilified by the media?
This question comes up often during conversations, as media often attribute bankers as the catalyst for the 2008 financial crisis
In my view, many bankers were merely operating under a (monetary and regulatory) policy framework set in motion even before they began their banking careers.
For example, the housing bubble was fueled by accommodative central bank policy following the dot-com bubble burst and 9-11 attack. Borrowing cost was low, and banks were all making risky loans as credit was plentiful. If a bank doesn’t lend to borrowers with shaky credit report, another bank would do so (and the responsible loan officer in the first bank will likely face negative repercussions).
Consumers also share some of the blame – prudent financial planning was replaced by greed-fueled frenzy. Many borrowers ignored their intuition that low income and high mortgage loans can be a risky combination. Instead, they believed it was everyone’s right to own a house. Many responsible renters and homeowners were labeled “dumb” as serial house flippers prospered during the boom.
Yet, the media has consistently portrayed irresponsible borrowers as hapless victims and dumped all guilt onto bankers’ shoulders.
Next article10 20 2015 | by Victor Xing | Capital Markets