Financial Crisis in America
Intro -- FINANCIAL CRISIS IN AMERICA -- FINANCIAL CRISIS IN AMERICA -- CONTENTS -- PREFACE -- POLICY OPTIONS FOR THE HOUSING ANDFINANCIAL MARKETS -- NOTES -- PREFACE -- SECTION 1. INTRODUTION -- SECTION 2. THE CURRENT ECONOMIC SITUATION -- Economic Activity -- House Prices and Mortgage Markets -- FINANCIAL MARKETS -- Financial Markets -- Fiscal Stimulus -- Actions by the Federal Reserve -- SECTION 3. POLICY OPTIONS -- Considerations for Policymakers -- Loan Restructuring -- Proposals to Facilitate the Reduction of Mortgage Balances -- Federal Assistance to Participants in the Mortgage Market -- Recent Activity by the Federal Government and Government-Sponsored Enterprises -- Expanding the Role of the Federal Housing Administration -- Further Expanding the Role of Fannie Mae and Freddie Mac -- Expanding the Role of Federal Home Loan Banks -- Increasing Federal Assistance to Community-Based Organizations -- Creating a New Agency -- REFERENCES -- Section 1 -- Section 2 -- Section 3 -- FINANCIAL CRISIS? THE LIQUIDITY CRUNCHOF AUGUST 2007 -- ABSTRACT -- INTRODUCTION -- HOW WE GOT HERE -- The Housing Boom and Bust -- Securitization in the Mortgage Market -- Financial Problems for Lenders -- TURMOIL IN FINANCIAL MARKETS -- Problems for Hedge Funds and Investment Banks -- The Liquidity Crunch -- The Response of Central Banks -- Why Did It Happen? -- POLICY ISSUES -- Monetary Policy in a Liquidity Crunch -- Systemic Risk and Contagion -- Could Problems in the Mortgage Market Have Been Averted? -- Financial Market Regulation -- Rating Agencies -- Financial Markets and the Real Economy -- REFERENCES -- AVERTING FINANCIAL CRISIS -- ABSTRACT -- INTRODUCTION -- THE UNDERLYING FINANCIAL PROBLEMS -- What Makes a Financial Crisis? -- GOVERNMENT INTERVENTIONS OPEN MARKETOPERATIONS AND MONETARY POLICY -- The Discount Window -- Term Auction Facility (TAF).