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FedSpeak: Hoenig Previews Jackson Hole

MNI FedSpeak Podcasts

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Is There a Risk of a Financial Crisis?

If thereserve raises rates sufficiently to the for above four % through the end of the year, then i think you will have pressures on acid values and downward pressure on acid values of all kinds. I think it's not just in the shadow banks, because the commercial banks, fund the that shaltow banki sector. And that will come back on them on their balance sheet. But as we learned in the financial crisis, brisk, wated capital become come secondary in crisis. Only leverage matters, and the leverage racial matters.

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