Tag: financial-crisis

3 pages tagged financial-crisis.

Pages

Chapter 13: Banks as a System — Regulation and Deregulation — Economics 101

Banks don’t operate alone — they lend to each other overnight, share contagion when confidence fails, and live or die by a regulatory framework that has swung between tight and loose for 160 years. How the fed funds market, bank runs, and the Dodd-Frank pendulum fit together.
Chapter 58: The Great Depression Meets the Great Recession — Economics 101

Two of America’s worst economic catastrophes share a common anatomy: deregulation, easy credit, asset bubbles, and cascading failures. This chapter traces the roots of the Great Recession through securitization and the CDO machine, and connects the 2008 meltdown to lessons—and failures—from the Great Depression.
Chapter 59: The Collapse of Investment Banking — Economics 101

Misaligned incentives, fraudulently rated CDOs, and an unhedged insurance market drove Bear Stearns and Lehman Brothers to the brink — and beyond. This chapter explains how the principal-agent problem, credit default swaps, and moral hazard combined to trigger the 2008 global credit freeze.