Congress and the Bailout
Thursday, November 6th, 2008November 06, 2008
In today’s Slate, Ray Fisman of Columbia Business School writes “What’s In It for Me?: How congressmen decided to vote for the bailout.”
Archive for the ‘Credit Crisis’ Category
Securitization, Screening and Default Models: Evidence from Subprime Loans
Wednesday, November 5th, 2008November 4, 2008
Amit Seru presents the third lecture of the Credit Crisis Series, part of the Myron Scholes Global Markets Forum.
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Paulson’s Gift
Monday, November 3rd, 2008November 3, 2008
By Pietro Veronesi and Luigi Zingales
We calculate the efficiency and distributional effects of the largest ever U.S. Government intervention in the financial system. Possible systemic effects aside, we estimate that the revised Paulson plan increased the value of banks’ financial claims by $133 billion at a taxpayers’ cost of $112 -135 billions, creating no value.
“The Current Financial Crisis, Other Recent Crises, and the Role of Short-term Debt Crisis”
Wednesday, October 29th, 2008October 28, 2008
Doug Diamond presents the second lecture of the Credit Crisis Series, part of the Myron Scholes Global Markets Forum.
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Plan B
Thursday, October 23rd, 2008by Luigi Zingales
Economist’s Voice - October 2008
Luigi Zingales offers an alternative to Paulson’s bailout plan. He seeks to combat the credit crisis on two fronts: the real estate market and Wall Street.
Don’t Blame the Messenger…or Ignore the Message
Thursday, October 23rd, 2008by Ray Ball
The message? Highly leveraged institutions gambling heavily on risky, low-transparency securities are simply asking for trouble. To avoid future financial crises, subprime mortgages need to move to moderately leveraged institutions – pension plans, 401(k) plans, mutual funds, sovereign funds, endowments, insurance companies and investment vehicles with conservative balance sheets like Berkshire Hathaway. Investment banks, and perhaps even banks, do not belong in this business. Ignoring this message will place us in peril again, someday.
Remarks on the Credit Crisis
Thursday, October 23rd, 2008By Sam Peltzman
Federal Reserve Bank of Chicago
At this writing in early October, 2008 it appears that the first phase of the financial crisis is ending and the second is about to or has begun. The phase that is ending entails flushing the worst assets created during the sub-prime lending boom out of the financial system. It has been accomplished by massive write downs and government actions of various kinds culminating with the creation of a taxpayer financed buyout fund for these assets. The phase that is beginning will be driven by the broader deterioration in bank balance sheets and income streams emanating from the ongoing decline in real estate values.
The Consequences of Mortgage Credit Expansion: Subprime Lending and the Mortgage Default Crisis
Wednesday, October 22nd, 2008October 21, 2008
Amir Sufi presents the first lecture of the Credit Crisis Series, part of the Myron Scholes Global Markets Forum.
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The Financial Crisis and the Bailout: A Primer
Thursday, October 16th, 2008October 16, 2008
Steven Kaplan provides a primer on the crisis. What is the problem? How did we get here? What do we need to do? What does the bailout do and not do? What else should be done?
Commentary - The Bailout: A Primer
Thursday, October 16th, 2008by Steven Kaplan
Forbes - October 17, 2008
In the latest chapter of the credit crisis, the U.S. Government announced this week that it would take equity stakes in the country’s top financial institutions. As has been the case been throughout the crisis, there has been a huge amount written about whether the Treasury’s actions will be effective. Much of that writing, like the bank balance sheets that have helped cause the credit crisis, may be opaque to a non-expert reader.