Category Archives: Crisis of 2007-2008

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2016 news round-up: So little has changed

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The biggest news about the repurchase market in 2016 was how little has changed since 2008. A year ago, the future looked brighter. 2015 was a hopeful year for people who want to see a solution to the risks that … Continue reading

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Unfinished business: Banking in the shadows

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Paul Volcker gets it. Will anyone listen? Here’s what he wants Americans to know: The main danger in the financial markets is not banks getting too big. The main danger in the financial markets is non-banks borrowing short to lend … Continue reading

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The 2008 crisis: Was it traditional banks or shadow banks?

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Still think the financial crisis happened at banks? Think the extensive regulation of banks that Congress and regulators have undertaken since 2008 has solved the problem? Take a look at this chart from “Shadow Banking Reemerges, Posing Challenges to Banks … Continue reading

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Repos make the news

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The big news about the repurchase market in 2015 was that it made the news. After decades when the largest financial market in the world rarely appeared in public, in 2015 repos finally hit the big time. At least 140 … Continue reading

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Lenders drove the boom and the bust

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In the years leading up to the 2008 financial crisis, trillions of new dollars flooded into housing.  Why? Was it coaxed into the housing market by borrowers who convinced bankers they could pay back the loans? No. It gushed into … Continue reading

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Bankruptcy act of 2005 worsened boom and bust

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One puzzle about the 2008 financial crisis is what caused the financial markets to bubble and burst at that particular time. One reason was The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.  Its provisions encouraged lenders to lend into … Continue reading

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Economists who best understand repo are still working to stabilize it: 2014 in review

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A series of conferences and reports in the second half of 2014 show that the economists who best understand the repo phenomenon are still worried about it and working to stabilize it. This is welcome news, after months of concern … Continue reading