Monthly Archives: May 2009

Gallery

Falkenstein: I found the transmission mechanism, the amplifier

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How did problems in subprime housing translate into a crisis that paralyzed Wall Street and thrust Main Street into the Great Recession? Many have asked that question since the catastrophic days of September 2008. Eric Falkenstein, economist, quant, blogger and … Continue reading

Gallery

“Slapped in the face by the invisible hand”

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“Slapped in the Face by the Invisible Hand: Banking and the Panic of 2007″ is Yale University economist Gary B. Gorton’s explanation for the financial crisis of 2007 and 2008. The paper was prepared for the Federal Reserve Bank of … Continue reading