Generally, the initial effect is not on income at all but on the prices of existing assets (bonds, equities, houses, and other physical capital). An increased rate of monetary growth raises the amount of cash people (or businesses) have relative to other assets. The holders of the excess ...
contributing to the growth of subprime lending was the widespread practice of securitization, whereby banks bundled together hundreds or even thousands of subprime mortgages and other, less-risky forms of consumer debt and sold them (or pieces of them) in capital markets as securities (bonds) to ...