1. The case refers to the classic trap of borrowing short and lending long. Explain what this means. What are the advantages of borrowing short and lending long? What are the disadvantages?

2. Why did the sovereign wealth funds of Singapore Abu Dhabi and China choose to invest in UBS Citigroup and Morgan Stanley at a time when they were performing so poorly Do these investments create any public policy issues If so what are they. 

3. What happens to an economy when a housing bubble bursts.

Answer rating: 100% (QA)

1 Borrowing short and lending long means that banks borrow short term they borrow from people on a s... View the full answer