One of the biggest challenges facing the global economy is the shortage of safe assets, those assets that are highly liquid and expected to maintain their value. This shortage matters because safe assets facilitate exchange and effectively function as money. AAA-rated CDOs, for example, served as collateral for repurchase agreements which were the equivalent of [...] View the full post at: Resolving the Safe Asset Shortage Problem Related posts: Asset Allocation: Thinking About Risk Premiums Geithner Plan vs. Paulson Plan October Sell-Off Spares No Asset