As regulators began to relax the rules, the funds diversified into corporate debt, and then into the stock market and structured finance instruments.
"Right now, automakers are legitimately trying to sustain demand and market share through aggressive manipulation of finance instruments," said Tom Libby, an industry analyst for J.D. Power, "but the long-term ramifications of these efforts are questionable".
To support these synergies, climate finance instruments should be designed and governed in ways that aim to deliver such co-benefits, thereby helping achieve globally agreed development goals (IIED Briefing 2013). .
"The case can be made that the credit crisis was abetted by the failure of the rating agencies to appreciate the toxic potential of the structured finance instruments," charges Morris W. Offit, chairman of Offit Capital Advisors.
They don't create vast casinos based on fantasy finance instruments that turn toxic.
They are in the business of making money by playing the financial markets, from mergers and acquisitions, from trading, and from creating and selling fantasy finance instruments.
In fact trillions of dollars worth of fantasy finance instruments that had made Wall Street fat and rich crashed in value all over the world.
They enabled Wall Street to deploy fantasy finance instruments to gain a larger and larger share of our economy -- financial industry profits constituted almost 40percentt of all U.S. profits just before the crash.
Wall Street solved that problem by creating a menagerie of deregulated fantasy finance instruments that sucked up the surplus wealth and earned Wall Street more profits that ever before.
This new financing instrument, with its focus on payment based on results, is a hot topic in development circles.
