tshk1221

Great Depression Not Imminent, But Inevitable

Reduction in the size of the risk insurance businesses will not erode credit quality. Credit quality will actually improve since the protection from risk insurance is gone or less. One of the reasons for the widespread rampant, irresponsible and reckless consumer lending, especially mortgage in the US for the last 5 years was due to this unquantifiable protection from risk insurance. Credit quality will definitely improve, and credit quantity will decrease or erode due to less risk insurance businesses.