POLD89H3 Lecture Notes - Revised Version, General Agreement On Tariffs And Trade, Washington Consensus
20 May 2014
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Leverage key word its illegal to leverage more than 3% but the bank"s leverage. Bretton woods system 1944 put in place to produce some stability in the world. Most of the institutions has been weakened and or ignored. Governments have been talking about a revised version. Imf said okay but in return you will privatise anything and when the grain comes you will sell it and give the money. Bretton woods version 2. 0 find out about it! Max of 15 dollars of leverage from 5 bucks. Broker assumes leverage is more this continues through the chain. Investors assumed they have more money to invest they invest in mortgage for people who already had a mortage. Default should be no more than 10% they will look for people wto gove a mortage even if they are not qualified. People were given mortagaes but they couldn"t give them back which led to default and foreclosure.
