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The agency also reported that speculative purchase positions are currently near the lowest levels seen over the last year.
Lee Sachs was in charge of implementing TALF, which would subsidize the speculative purchase of distressed securities by providing cheap non-recourse loans.
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Strong demand from China and speculative purchases by investment funds continue to push up prices.
Speculative purchases also made things worse: people are more likely to give back the keys to homes they are not living in.
This effervescence clearly worries its government, which has made it more difficult for buyers to delay mortgage payments and taken steps to deter speculative purchases.
Japanese banks, which need to offset huge losses from write-offs of bad loans, have managed to raise revenues by exploiting a loophole allowing them to pile up big exposures to derivatives, without having to disclose them to investors.Banks make money through speculative purchases of interest-rate swaps, locking in income from a fixed rate of interest in return for paying a lower, floating rate.
Homeowners looking to bail on speculative purchases in Tennessee have been able to find buyers at a rate that's better than most in this situation.
In addition, during the height of the art market bubble, speculative purchasing behavior was driven by a herd mentality, which drove prices up without a corresponding increase in the value or quality of the works purchased.
An art market lens stresses the importance of price transparency and enables the use of auction prices to help those collectors, who do not have billions to spend, to make more informed decisions about the value of works they purchase, instead of making uninformed, speculative purchases.
Property remains popular, but the government has tried to curb speculative home purchases.
The Fed can prevent "irrational exuberance" in the stock market by setting limits on speculative margin purchases.
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