Need to Take 'Moment of Calm' to Form Resiliency: Kathryn Judge

The video discusses the necessity of aggressive Fed and Congress interventions during financial crises, highlighting the importance of learning from past events to improve market resilience. It examines Janet Yellen's role in addressing financial stability and explores potential market structure improvements, such as swing pricing and the use of ETFs, to mitigate systemic risks.

What was a key action taken by the Fed and Congress during the financial crisis?

• They reduced interest rates to zero.

• They intervened aggressively and quickly.

• They implemented a new currency system.

• They increased taxes to stabilize the economy.

Why is failure sometimes considered necessary in financial markets?

• To address underlying market issues.

• To eliminate competition.

• To reduce inflation.

• To increase government revenue.

What is one of Janet Yellen's priorities as mentioned in the transcript?

• Reducing interest rates.

• Increasing government spending.

• Improving nonbank financial intermediation.

• Addressing climate change.

What is swing pricing in the context of open-end bond markets?

• A method to increase bond prices.

• A way to eliminate first mover advantage.

• A strategy to reduce trading volume.

• A pricing mechanism to manage liquidity costs.

How do ETFs help in spreading risk during financial distress?

• By providing discounts during distress periods.

• By offering fixed returns.

• By eliminating market volatility.

• By increasing liquidity in the market.

What is a potential benefit of having more ETFs compared to open-end funds?

• More government intervention.

• Increased market volatility.

• Less concern during financial distress.

• Higher returns on investment.

What is a key challenge in the corporate bond market mentioned in the transcript?

• High trading volume.

• Lack of liquidity.

• Excessive government regulation.

• Overvaluation of bonds.