Financial Crisis.pdf

WP_81-Kane-Double-Whammy.pdf
Preview of Financial Crisis
🔗 Source: ineteconomics.org
📊 Size: 1.93 MB
📄 Pages: 43 pages
⬇️ Downloads: 192

Summary

The US housing-finance system and financial safety net have implicit subsidies that are channeled through regulatory, supervisory, and tax systems, allowing banks to build up hidden leverage and arcane loss exposures, which can lead to a financial crisis when tested by creditor runs. Post-crisis regulatory reforms have been insufficient, and megabanks are re-establishing their ability to use dividends and stock buybacks to rebuild their leverage to dangerous levels, potentially triggering another crisis.

Description

The US housing-finance system and financial safety net have implicit subsidies that are channeled through regulatory, supervisory, and tax systems, allowing...

Technical Information

  • File Format: PDF
  • File Size: 1.93 MB
  • Pages: 43
  • Language: EN
  • Total Downloads: 192
  • Last Updated: 7 days ago

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