Question: 1.Explain what the phrase privatizing the return and publicizing the risk means. Do you think the Too Big to Fail (TBTF) policy minimizes systemic risk
1.Explain what the phrase "privatizing the return and publicizing the risk" means. Do you think the Too Big to Fail (TBTF) policy minimizes systemic risk or exacerbates a moral hazard problem? Justify your ideas with specific reasons, facts, and examples.
2. Do you believe financial innovation can lead to greater risks in financial stability? Explain using a specific example. In replies to peers, discuss whether you agree or disagree with the ideas presented and explain why.
3. Discuss the three types of restructuring strategies and provide real-word examples of instances when each has been used. 150 words
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