"By and large, the toxic assets that brought us to this point are still on the books of the banks," she said.
Warren makes it clear the threats arising from these assets are far from over. Watch the video; it is rather long but an interesting and often disturbing exchange.
Visit msnbc.com for Breaking News, World News, and News about the Economy
Warren seems concerned the larger threat still looming is in the commericial mortgage market which is largely held by mid-sized and smaller financial institutions. Should a small bubble begin to emerge in the market, we could easily end up where we were last Fall. When pressed by Scarborough as to whether the bailouts saved the economy from a complete collapse, Warren appears somewhat reluctant to give an opinion. She does finally admit that though there would have been some pain and some large institutions would no longer be in business, it seemed unlikely the death spiral would have occurred.
No comments:
Post a Comment