Sub-Prime Crisis pt.2?

Just wondering if Mr. Wolff has a position/opinion on sub-prime auto loans and also the recent trend: securitization of single family rental homes (SFR's) by companies like Blackstone? What's the probability that these type of securities could be mismanaged similar to what occurred with the sub-prime mortgages crisis? Does this likely culminate in another impending crisis? Thanks for your consideration....

Official response from submitted

What you refer to as mismanagement is already well underway. The global glut of savings - as the rich accumulate but have nowhere to invest because they have impoverished the potential mass buyers of products - provokes and feeds all sorts of securitizations and other ways to squeeze returns for savings....leading to dangerous risks just as the parallel processes did leading up to 2007/8.


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  • responded with submitted 2016-11-13 12:54:19 -0500
  • published this page in Ask Prof. Wolff 2016-11-10 15:13:00 -0500

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