The Free Lunch Has Still

The Tub Helps Me Relax, And It's A Great Place To Read.

The Use Of A Growing Array Of Derivatives And The Related Application Of More-sophisticated Approaches To Measuring And Managing Risk Are Key Factors Underpinning The Greater Resilience Of Our Largest Financial Institutions... Derivatives Have Permitted The Unbundling Of Financial Risks.

Improvements In Lending Practices Driven By Information Technology Have Enabled Lenders To Reach Out To Households With Previously Unrecognized Borrowing Capacities.

We Cannot Rule Out A Situation In Which A Preemptive Policy Tightening Becomes Necessary, ... Such Caution Seems Especially Warranted With Regard To The Sharp Rise In Equity Prices During The Past Two Years. These Gains Have Obviously Raised Questions Of Sustainability.

If Prices Go Down, We Will Have Problems - Problems In The Sense Of Spillover To Other Areas.