By ensuring economic and price stability in the medium to long term, the Bank will provide a solid foundation upon which both firms and households can formulate their plans for the future and base their actual economic behavior. I believe this will, in turn, allow us to take advantage of global economic vigor to successfully confront the issues of demographic change and fiscal consolidation.
To be clear, the problem was not the use of securitization per se; rather, it was that originators of the securitized loans at times did not have the proper incentives to carefully assess the creditworthiness of borrowers. In many cases, once the loan had been securitized and sold, the originator no longer faced the consequences if the borrower defaulted.