What will be the unintended consequences of people trying to chase ways to get more yield?
People will always look for yield, but I think people will look more on a risk-adjusted basis than they did before. People chased yield throughout the early 2000s and, to some extent, lost their company. It’s interesting; people say the market didn’t work, so we need stronger regulation. I do think we need stronger regulation, especially in the area of systemic risk. I don’t think there’s any question that we—as a country or an industry—didn’t understand or manage the systemic risk as well as we should have by far.
