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Save The Economy: Break Up The Big Banks And Shape Up The Regulators, Charles W. Murdock
Save The Economy: Break Up The Big Banks And Shape Up The Regulators, Charles W. Murdock
Charles W. Murdock
Save the Economy: Break Up the Big Banks and Shape Up the Regulators
The U.S. economy is still reeling from the financial crisis that exploded in the fall of 2008. This article asserts that the big banks were major culprits in causing the crisis, by funding the non-bank lenders that created the toxic mortgages which the big banks securitized and sold to unwary investors. Paradoxically, banks which were then too big to fail are even larger today.
The article briefly reviews the history of banking from the Founding Fathers to the deregulatory mindset that has been present since 1980. It …
How Incentives Drove The Subprime Crisis, Charles W. Murdock
How Incentives Drove The Subprime Crisis, Charles W. Murdock
Charles W. Murdock
How Incentives Drove the Subprime Crisis
In order to address any systemic problem, whether the goal is to change the system, regulate the system, or change the incentives driving a system, it is necessary to appreciate all the drivers operating within the system. In the case of the subprime crisis, one of the drivers was the changing nature of the subprime loans, which was not factored into the models used by the investment bankers, the credit rating agencies, and the issuers of credit default swaps.
This paper is an attempt to look dispassionately at the subprime crisis from a particular …
How Incentives Drove The Subprime Crisis, Charles W. Murdock
How Incentives Drove The Subprime Crisis, Charles W. Murdock
Charles W. Murdock
How Incentives Drove the Subprime Crisis
In order to address any systemic problem, whether the goal is to change the system, regulate the system, or change the incentives driving a system, it is necessary to appreciate all the drivers operating within the system. In the case of the subprime crisis, one of the drivers was the changing nature of the subprime loans, which was not factored into the models used by the investment bankers, the credit rating agencies, and the issuers of credit default swaps.
This paper is an attempt to look dispassionately at the subprime crisis from a particular …