Hidden in Plain Sight

What Really Caused the World's Worst Financial Crisis and Why It Could Happen Again

Author: Peter J. Wallison

Publisher: Encounter Books

ISBN: 159403866X

Category: Business & Economics

Page: 432

View: 7140

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The 2008 financial crisis—like the Great Depression—was a world-historical event. What caused it will be debated for years, if not generations. The conventional narrative is that the financial crisis was caused by Wall Street greed and insufficient regulation of the financial system. That narrative produced the Dodd-Frank Act, the most comprehensive financial-system regulation since the New Deal. There is evidence, however, that the Dodd-Frank Act has slowed the recovery from the recession. If insufficient regulation caused the financial crisis, then the Dodd-Frank Act will never be modified or repealed; proponents will argue that doing so will cause another crisis. A competing narrative about what caused the financial crisis has received little attention. This view, which is accepted by almost all Republicans in Congress and most conservatives, contends that the crisis was caused by government housing policies. This book extensively documents this view. For example, it shows that in June 2008, before the crisis, 58 percent of all US mortgages were subprime or other low-quality mortgages. Of these, 76 percent were on the books of government agencies such as Fannie Mae and Freddie Mac. When these mortgages defaulted in 2007 and 2008, they drove down housing prices and weakened banks and other mortgage holders, causing the crisis. After this book is published, no one will be able to claim that the financial crisis was caused by insufficient regulation, or defend Dodd-Frank, without coming to terms with the data this book contains.

Hidden in Plain Sight

What Really Caused the World's Worst Financial Crisis--And Why It Could Happen Again

Author: Peter J. Wallison

Publisher: N.A

ISBN: 9781594038655

Category: Business & Economics

Page: 432

View: 9897

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The 2008 financial crisis--like the Great Depression--was a world-historical event. What caused it will be debated for years, if not generations. The conventional narrative is that the financial crisis was caused by Wall Street greed and insufficient regulation of the financial system. That narrative produced the Dodd-Frank Act, the most comprehensive financial-system regulation since the New Deal. There is evidence, however, that the Dodd-Frank Act has slowed the recovery from the recession. If insufficient regulation caused the financial crisis, then the Dodd-Frank Act will never be modified or repealed; proponents will argue that doing so will cause another crisis. A competing narrative about what caused the financial crisis has received little attention. This view, which is accepted by almost all Republicans in Congress and most conservatives, contends that the crisis was caused by government housing policies. This book extensively documents this view. For example, it shows that in June 2008, before the crisis, 58 percent of all US mortgages were subprime or other low-quality mortgages. Of these, 76 percent were on the books of government agencies such as Fannie Mae and Freddie Mac. When these mortgages defaulted in 2007 and 2008, they drove down housing prices and weakened banks and other mortgage holders, causing the crisis. After this book is published, no one will be able to claim that the financial crisis was caused by insufficient regulation, or defend Dodd-Frank, without coming to terms with the data this book contains.

Hidden in Plain Sight

What Really Caused the World's Worst Financial Crisis and Why It Could Happen Again

Author: Peter Wallison

Publisher: Encounter Books

ISBN: 159403771X

Category: Business & Economics

Page: 432

View: 6595

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The 2008 financial crisis—like the Great Depression—was a world-historical event. What caused it will be debated for years, if not generations. The conventional narrative is that the financial crisis was caused by Wall Street greed and insufficient regulation of the financial system. That narrative produced the Dodd-Frank Act, the most comprehensive financial-system regulation since the New Deal. There is evidence, however, that the Dodd-Frank Act has slowed the recovery from the recession. If insufficient regulation caused the financial crisis, then the Dodd-Frank Act will never be modified or repealed; proponents will argue that doing so will cause another crisis. A competing narrative about what caused the financial crisis has received little attention. This view, which is accepted by almost all Republicans in Congress and most conservatives, contends that the crisis was caused by government housing policies. This book extensively documents this view. For example, it shows that in June 2008, before the crisis, 56 percent of all US mortgages were subprime or otherwise low-quality. Of these, 76 percent were on the books of government agencies such as Fannie Mae and Freddie Mac. When these mortgages defaulted in 2007 and 2008, they drove down housing prices and weakened banks and other mortgage holders, causing the crisis. After this book is published, no one will be able to claim that the financial crisis was caused by insufficient regulation, or defend Dodd-Frank, without coming to terms with the data this book contains.

After the Music Stopped

The Financial Crisis, the Response, and the Work Ahead

Author: Alan S. Blinder

Publisher: Penguin Group USA

ISBN: 014312448X

Category: Business & Economics

Page: 504

View: 5798

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Assesses the U.S. financial crisis and its lessons, exploring its contributing factors while revealing its more devastating but lesser-known consequences and outlining potentially divisive solutions that may be necessary for recovery.

It's Not as Bad as You Think

Why Capitalism Trumps Fear and the Economy Will Thrive

Author: Brian S. Wesbury

Publisher: John Wiley & Sons

ISBN: 047023833X

Category: Business & Economics

Page: 210

View: 3635

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An upbeat antidote to the gloom and doom forecasts of thefinancial future Just about everyone is worried about the economy and markets.And the fear is that they will stay down for a long time. But a fewbrave voices say that the gloom and doom forecasts are just toopessimistic. Reality is that entrepreneurs don't give up. Historyis pretty clear, every time the economy is thought to be done, wornout, finished, it bounces back and heads to new highs. In fact, theeconomy and the markets-counter to conventional wisdom-have startedto improve in the first half of 2009. Even housing is showing somesigns of life. With It's Not as Bad as You Think, Brian Wesbury, rankedas one of the top economic forecasters by the Wall StreetJournal and USA Today, shows you that while thefinancial future may be hard to predict, it will ultimately beprofitable over the long haul. In this easy-to-follow and engagingforecast of the future, Wesbury takes a look at the good, the bad,and the ugly-and debunks the pouting pundits of pessimism to showyou how to prosper now and in the future. An optimistic look at the economy and the markets written byone of today's foremost financial forecasters Presents a roadmap to seek opportunities in all the panic Shows you how to analyze economic indicators and governmentpolicy to grow your wealth so you don't lose by hiding under thebed A breath of fresh air, Wesbury's objectivity and optimismprovide welcome relief to the daily bad news stories, as he sets usall up to capitalize on tomorrow's great possibilities.

Hidden in Plain Sight

How to Create Extraordinary Products for Tomorrow's Customers

Author: Jan Chipchase,Simon Steinhardt

Publisher: Harper Collins

ISBN: 0062125710

Category: Business & Economics

Page: 256

View: 3526

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Hidden in Plain Sight by global innovation consultant Jan Chipchase with Simon Steinhardt is a fascinating look at how consumers think and behave. Chipchase, named by Fortune as “one of the 50 smartest people in tech,” has traveled the world, studying people of all nations and their habits, paying attention to the ordinary things that we do every day an how they effect our buying decisions. Future-focused and provocative, Hidden in Plain Sight: How to Create Extraordinary Products for Tomorrow's Customers illuminates exactly what drives consumers to make the choices they do, and demonstrates how all types of businesses can learn to see—and capitalize upon—what is hidden in plain sight today to create businesses tomorrow.

Mad about Trade

Why Main Street America Should Embrace Globalization

Author: Daniel T. Griswold

Publisher: Cato Institute

ISBN: 193530819X

Category: Business & Economics

Page: 203

View: 2256

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Made about Trade demonstrates how free trade is "the working family's best friend" and reexamines "the globalization debate from the perspective of what it means for millions of typical American families."

Guaranteed to Fail

Fannie Mae, Freddie Mac, and the Debacle of Mortgage Finance

Author: Viral V. Acharya,Matthew Richardson,Stijn van Nieuwerburgh,Lawrence J. White

Publisher: Princeton University Press

ISBN: 9781400838097

Category: Business & Economics

Page: 232

View: 7867

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The financial collapse of Fannie Mae and Freddie Mac in 2008 led to one of the most sweeping government interventions in private financial markets in history. The bailout has already cost American taxpayers close to $150 billion, and substantially more will be needed. The U.S. economy--and by extension, the global financial system--has a lot riding on Fannie and Freddie. They cannot fail, yet that is precisely what these mortgage giants are guaranteed to do. How can we limit the damage to our economy, and avoid making the same mistakes in the future? Guaranteed to Fail explains how poorly designed government guarantees for Fannie Mae and Freddie Mac led to the debacle of mortgage finance in the United States, weighs different reform proposals, and provides sensible, practical recommendations. Despite repeated calls for tougher action, Washington has expanded the scope of its guarantees to Fannie and Freddie, fueling more and more housing and mortgages all across the economy--and putting all of us at risk. This book unravels the dizzyingly immense, highly interconnected businesses of Fannie and Freddie. It proposes a unique model of reform that emphasizes public-private partnership, one that can serve as a blueprint for better organizing and managing government-sponsored enterprises like Fannie Mae and Freddie Mac. In doing so, Guaranteed to Fail strikes a cautionary note about excessive government intervention in markets.

Reckless Endangerment

How Outsized Ambition, Greed, and Corruption Led to Economic Armageddon

Author: Gretchen Morgenson,Joshua Rosner

Publisher: Macmillan

ISBN: 9781429965774

Category: Business & Economics

Page: 352

View: 8632

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A Washington Post Notable Nonfiction Book for 2011 One of The Economist's 2011 Books of the Year The New York Times's Pulitzer Prize-winning columnist reveals how the financial meltdown emerged from the toxic interplay of Washington, Wall Street, and corrupt mortgage lenders In Reckless Endangerment, Gretchen Morgenson, the star business columnist of The New York Times, exposes how the watchdogs who were supposed to protect the country from financial harm were actually complicit in the actions that finally blew up the American economy. Drawing on previously untapped sources and building on original research from coauthor Joshua Rosner—who himself raised early warnings with the public and investors, and kept detailed records—Morgenson connects the dots that led to this fiasco. Morgenson and Rosner draw back the curtain on Fannie Mae, the mortgage-finance giant that grew, with the support of the Clinton administration, through the 1990s, becoming a major opponent of government oversight even as it was benefiting from public subsidies. They expose the role played not only by Fannie Mae executives but also by enablers at Countrywide Financial, Goldman Sachs, the Federal Reserve, HUD, Congress, the FDIC, and the biggest players on Wall Street, to show how greed, aggression, and fear led countless officials to ignore warning signs of an imminent disaster. Character-rich and definitive in its analysis, this is the one account of the financial crisis you must read.

Wasting a Crisis

Why Securities Regulation Fails

Author: Paul G. Mahoney

Publisher: University of Chicago Press

ISBN: 022623651X

Category: Law

Page: 202

View: 2489

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In "Securities Regulation Reassessed," Paul Mahoney shows that policy responses to financial crises are broadly similar across place and time: political actors, hoping to avoid blame for a financial crisis, create a narrative of market failure, arguing that misbehavior by securities market participants, rather than prior policy errors, is the primary cause of the crisis. Politically obliged regulators craft reforms that purport to solve problems which are either non-existent or only tangentially related to the crisis; yet they increase the complexity and expense of compliance, resulting in consolidation and concentration of market share in the hands of already leading financial firms. "Securities Regulation Reassessed" illustrates these points primarily but not exclusively with evidence from the New Deal-era securities reforms in the United States. Against the conventional wisdom that regards the New Deal reforms as successful, Mahoney provides substantial countervailing evidence, showing instead that Congress s diagnoses were systematically inaccurate and its remedies reduced competition in the securities industry. Looking farther into history, the work treats several key episodes prior to the New Deal, including the English financial crises of 1697 and 1720 and the blue sky era of the 1910s and 1920s in the United States. Finally, Mahoney considers the Sarbanes-Oxley Act of 2002 and the Dodd-Frank Act of 2010 from the same analytical perspective. Mahoney finds a predictable pattern for efforts at securities reform: they require huge effort to enact, and yield little objectively measurable payoff and some objectively measurable harm."

The Housing Boom and Bust

Author: Thomas Sowell

Publisher: ReadHowYouWant.com

ISBN: 145960931X

Category:

Page: 368

View: 3169

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Scary headlines and scarier statistics tell the story of a financial crisis on a scale not seen in decades - certainly not within the lifetime of most Americans. Moreover, this is a worldwide financial crisis. Financial institutions on both sides of the Atlantic have either collapsed or have been saved from collapse by government bailouts, as a result of buying securities based on American housing values that eroded or evaporated.Now completely revised in paperback, The Housing Boom and Bust is designed to unravel the tangled threads of that story. It also attempts to determine whether what is being done to deal with the problem is more likely to make things better or worse.

Ronald Reagan

The Power Of Conviction And The Success Of His Presidency

Author: Peter Wallison

Publisher: Basic Books

ISBN: 0786728450

Category: History

Page: 336

View: 6937

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An icon of the twentieth century, Ronald Reagan has earned a place among the most popular and successful U.S. presidents. In this compelling firsthand account of Reagan's presidency, Peter J. Wallison, former White House Counsel to President Reagan, argues that Reagan took office with a fully developed public philosophy and strategy for governing that was unique among modern presidents. "I am not a great man," Reagan once said, "just committed to great ideas." Wallison shows how Reagan's unyielding attachment to certain key ideas-communicated through his speeches-created a cohesive administration and revived the spirit of the nation. In Ronald Reagan, Wallison describes what it was like to be on Reagan's White House staff and how Reagan's attachment to principle produced both the best and worst days of his presidency. Updated with a new epilogue.

The Fall of the Euro: Reinventing the Eurozone and the Future of Global Investing

Author: Jens Nordvig

Publisher: McGraw Hill Professional

ISBN: 007183057X

Category: Business & Economics

Page: 264

View: 2235

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"What does the crisis in the Eurozone mean for our markets--and how can you protect your portfolio against a breakup of the Euro? A leading currency expert explainsLittle has been written about the instability of the Euro, but it's a very real threat to investors worldwide, as well as to the global economy. In The Fall of the Euro, the Global Head of Currency Strategy at Nomura describes why the breakup of the Eurozone remains a real risk and outlines investment strategies for the most likely scenarios.Over the last two years, swings in global asset markets have been increasingly driven by developments in Europe. This is something new: in the past, Europe was one of the most stable parts of the global economy, and its typically minor economic fluctuations would have little bearing on US equity markets. In the new environment of European turbulence, Europe's economic and political developments will be a persistent source of shocks for global financial markets. If the path ahead involves a disorderly breakup of the Eurozone, the instability to come will be much more intense than what we have seen to date. As an investor, you need a roadmap. This book provides it.Jens Nordvig is Managing Director, Head of Fixed Income Research, Americas and Global Head of Currency Strategy at Nomura, the global investment bank. Previously, Nordvig worked as a Senior Currency Strategist for investment management firm Bridgewater Associates, the largest hedge fund in the world. "--

The Bankers' New Clothes

What's Wrong with Banking and What to Do about It

Author: Anat Admati,Martin Hellwig

Publisher: Princeton University Press

ISBN: 140085119X

Category: Business & Economics

Page: 424

View: 6626

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The past few years have shown that risks in banking can impose significant costs on the economy. Many claim, however, that a safer banking system would require sacrificing lending and economic growth. The Bankers' New Clothes examines this claim and the narratives used by bankers, politicians, and regulators to rationalize the lack of reform, exposing them as invalid. Anat Admati and Martin Hellwig argue that we can have a safer and healthier banking system without sacrificing any of its benefits, and at essentially no cost to society. They seek to engage the broader public in the debate by cutting through the jargon of banking, clearing the fog of confusion, and presenting the issues in simple and accessible terms.

The End of Alchemy: Money, Banking, and the Future of the Global Economy

Author: Mervyn King

Publisher: W. W. Norton & Company

ISBN: 0393247031

Category: Business & Economics

Page: 368

View: 1685

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“Mervyn King may well have written the most important book to come out of the financial crisis. Agree or disagree, King’s visionary ideas deserve the attention of everyone from economics students to heads of state.” —Lawrence H. Summers Something is wrong with our banking system. We all sense that, but Mervyn King knows it firsthand; his ten years at the helm of the Bank of England, including at the height of the financial crisis, revealed profound truths about the mechanisms of our capitalist society. In The End of Alchemy he offers us an essential work about the history and future of money and banking, the keys to modern finance. The Industrial Revolution built the foundation of our modern capitalist age. Yet the flowering of technological innovations during that dynamic period relied on the widespread adoption of two much older ideas: the creation of paper money and the invention of banks that issued credit. We take these systems for granted today, yet at their core both ideas were revolutionary and almost magical. Common paper became as precious as gold, and risky long-term loans were transformed into safe short-term bank deposits. As King argues, this is financial alchemy—the creation of extraordinary financial powers that defy reality and common sense. Faith in these powers has led to huge benefits; the liquidity they create has fueled economic growth for two centuries now. However, they have also produced an unending string of economic disasters, from hyperinflations to banking collapses to the recent global recession and current stagnation. How do we reconcile the potent strengths of these ideas with their inherent weaknesses? King draws on his unique experience to present fresh interpretations of these economic forces and to point the way forward for the global economy. His bold solutions cut through current overstuffed and needlessly complex legislation to provide a clear path to durable prosperity and the end of overreliance on the alchemy of our financial ancestors.

Behind the Housing Crash

Confessions from an Insider

Author: Aaron Clarey

Publisher: Booksurge Llc

ISBN: N.A

Category: Business & Economics

Page: 315

View: 1630

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Corrupt bankers, FBI investigations, IRS raids, offshore bank accounts and more as an insider exposes those responsible for the housing crisis and explains what's in store for the rest of us.

The Courage to Act: A Memoir of a Crisis and Its Aftermath

Author: Ben S. Bernanke

Publisher: W. W. Norton & Company

ISBN: 0393247228

Category: Business & Economics

Page: 448

View: 3592

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A New York Times Bestseller “A fascinating account of the effort to save the world from another [Great Depression]. . . . Humanity should be grateful.”—Financial Times In 2006, Ben S. Bernanke was appointed chair of the Federal Reserve, the unexpected apex of a personal journey from small-town South Carolina to prestigious academic appointments and finally public service in Washington’s halls of power. There would be no time to celebrate. The bursting of a housing bubble in 2007 exposed the hidden vulnerabilities of the global financial system, bringing it to the brink of meltdown. From the implosion of the investment bank Bear Stearns to the unprecedented bailout of insurance giant AIG, efforts to arrest the financial contagion consumed Bernanke and his team at the Fed. Around the clock, they fought the crisis with every tool at their disposal to keep the United States and world economies afloat. Working with two U.S. presidents, and under fire from a fractious Congress and a public incensed by behavior on Wall Street, the Fed—alongside colleagues in the Treasury Department—successfully stabilized a teetering financial system. With creativity and decisiveness, they prevented an economic collapse of unimaginable scale and went on to craft the unorthodox programs that would help revive the U.S. economy and become the model for other countries. Rich with detail of the decision-making process in Washington and indelible portraits of the major players, The Courage to Act recounts and explains the worst financial crisis and economic slump in America since the Great Depression, providing an insider’s account of the policy response.

Bad History, Worse Policy

How a False Narrative about the Financial Crisis Led to the Dodd-Frank Act

Author: Peter J. Wallison

Publisher: Rowman & Littlefield

ISBN: 9780844772394

Category: Finance

Page: 583

View: 9571

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In his new book, "Bad History, Worse Policy: How a False Narrative about the Financial Crisis Led to the Dodd-Frank Act," (AEI Press) Wallison argues that the Dodd-Frank Act -- the Obama administration's sweeping financial regulation law -- will suppress economic growth for years to come. Based on his essays on financial services issues published between 2004 and 2012, Wallison shows that the act was based on a false and ideologically motivated narrative about the financial crisis."--Provided by publisher.

Bull by the Horns

Fighting to Save Main Street from Wall Street and Wall Street from Itself

Author: Sheila Bair

Publisher: Simon and Schuster

ISBN: 1451672497

Category: Business & Economics

Page: 432

View: 8860

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A former FDIC chairwoman, who was among the first individuals to acknowledge the full risk of subprime loans, shares expert and insider perspectives on the economic crisis to assess contributing causes and ultimate ramifications.

The Return of Depression Economics and the Crisis of 2008

Author: Paul Krugman

Publisher: W. W. Norton & Company

ISBN: 0393337804

Category: Business & Economics

Page: 207

View: 6627

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Looks at financial crises that have plagued various economies around the world and uses this information to interpret today's financial upheaval and its implications for the future.