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"You want to have a normally functioning market, a normal environment," said Steve Oristaglio, an executive with Putnam Investments.
In any normally functioning market, they would have subsequently had trouble making huge profits.
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–Legacy Securities: Secondary markets have become highly illiquid, and are trading at prices below where they would be in normally functioning markets.
In a normally functioning mortgage market, almost all homeowners would have refinanced their mortgages to take advantage of low rates.
Sallie Mae's preferred measurement also neglects the relative interest rate paid by student borrowers, whose rates in a normally functioning competitive market would move in tandem with interest rates in the broader economy.
The initial collateralization was helpful (as is the case with most normally functioning secondary markets which provide liquidity), but further spreading the risk through opaque financial instruments served only to fragment, and further obscure, the value and the risk of what was being sold.
Not in Japan: economists explain the sell-off in the bond market as a return to the proper pricing of money and a more normally functioning economy.Yet domestic investors continue to be net sellers of Japanese shares.
But these drugs will also have, some say, an "enhancing" effect on normally functioning people.
Indeed, normally functioning kidneys exhibit similar results [7].
'It's an organ that normally functions well but, if put under too much strain, it starts not functioning properly.
Lenders and the Education Department profit when borrowers pay higher rates than they otherwise would in a normally-functioning market.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com