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Also see specific Newspaper Comment and Correspondence on these these issues:-
The Debate about the UK Fiscal Deficit
Global Imbalances
Name and Link Type of Resource Description
     
Hyman Minsky (1987), Securitization
Preface and Afterword by L. Randall Wray
Levy Economics Institute, Policy Note 2008/2

Available here
Article "“At the annual banking structure and competition conference of the Federal Reserve Bank of Chicago in May 1987, the buzzword heard in the corridors and used by many of the speakers was ‘that which can be securitized, will be securitized.’” So notes Hyman Minsky in a prescient memo on the nature, and the implications, of securitization, written 20 years before an explosion in the securitization of home mortgages helped create the current financial crisis. This memo, which served as the basis for a lecture in Minsky’s monetary theory class at Washington University, has not been widely circulated. It is published here in its entirety, with a preface and an afterword by Senior Scholar L. Randall Wray that places Minsky’s work in context. "
Bernanke: There's No Housing Bubble to Go Bust
Fed Nominee Has Said 'Cooling' Won't Hurt
By Nell Henderson, Washington Post Staff Writer October 27, 2005;
Available Here
Newspaper article "Thursday, October 27, 2005. Ben S. Bernanke does not think the national housing boom is a bubble that is about to burst, he indicated to Congress last week, just a few days before President Bush nominated him to become the next chairman of the Federal Reserve. U.S. house prices have risen by nearly 25 percent over the past two years, noted Bernanke, currently chairman of the president's Council of Economic Advisers, in testimony to Congress's Joint Economic Committee. But these increases, he said, "largely reflect strong economic fundamentals," such as strong growth in jobs, incomes and the number of new households."
Michael Hudson
The New Road to Serfdom. An illustrated guide to the coming real estate collapse
Harpers Magazine, May 2006
Available Here
Article EXTRACT: "....Most members of the rentier class are very rich. One might like to join that class. And so our paradox (seemingly) is resolved. With the real estate boom, the great mass of Americans can take on colossal debt today and realize colossal capital gains—and the concomitant rentier life of leisure—tomorrow. If you have the wherewithal to fill out a mortgage application, then you need never work again. What could be more inviting—or, for that matter, more egalitarian? That’s the pitch, anyway. The reality is that, although home ownership may be a wise choice for many people, this particular real estate bubble has been carefully engineered to lure home buyers into circumstances detrimental to their own best interests. The bait is easy money. The trap is a modern equivalent to peonage, a lifetime spent working to pay off debt on an asset of rapidly dwindling value. Most everyone involved in the real estate bubble thus far has made at least a few dollars. But that is about to change. The bubble will burst, and when it does, the people who thought they would be living the easy life of a landlord will soon find that what they really signed up for was the hard servitude of debt serfdom......"
Ann Pettifor, The Coming First World Debt Crisis
Palgrave Macmillan (2 Oct 2006). Available Here
Book
Ben Bernanke
The Subprime Mortgage Market
Speech at Federal Reserve Bank of Chicago’s 43rd Annual Conference on Bank Structure and Competition, Chicago, Illinois May 17, 2007
Available Here
Transcript of speech EXTRACT"The expansion of subprime mortgage lending has made homeownership possible for households that in the past might not have qualified for a mortgage and has thereby contributed to the rise in the homeownership rate since the mid-1990s... Not only the new homeowners but also their communities have benefited from these trends. Studies point to various ways in which homeownership helps strengthen neighborhoods...."
Foresight and Fait Accompli: Two Timelines for the Global Financial Collapse.
Real World Economics Review
Available Here
Anticipations and warnings of the Global Financial Crisis
George Cooper
The Origin of Financial Crises: Central banks, credit bubbles and the efficient market fallacy
Harriman House Publishing 2008
Available Here
Book "Product Description: The Origin of Financial Crises provides a compelling analysis of the forces behind today's economic crisis. In a series of disarmingly simple arguments George Cooper challenges the core principles of today's economic orthodoxy, explaining why financial markets do not obey the efficient market principles described in today's economic textbooks but are instead inherently unstable and habitually crisis prone. "
Krugman Paul. After The Money’s Gone
The New York Times, December 14, 2007.
Available Here
Newspaper article ""
PBS Frontline Inside the Meltdown
Available Here
Website with links to various sources Title page: "How the economy went so bad, so fast and what Bernanke and Paulson didn't see, couldn't stop and weren't able to fix"
BBC website: The US sub-prime crisis in graphics"
BBC November 2007
Available Here
BBC webpage ""
BBC website: The downturn in facts and figures: credit Crunch"
BBC Aug 2008
Available Here
BBC webpage ""
BBC website: The downturn in facts and figures: UK Downturn"
BBC Nov 2008
Available Here
BBC webpage ""
Beitel, Karl
Understanding the Subprime Debacle
Monthly Review, May 08.
Available here
Article EXTRACT: "To understand the nature of the current crisis, it is necessary first to consider how recent financial innovations have transformed the process through which banks supply credit........"
Blackburn, Robin
The Subprime Mortgage Crisis
New Left Review 50 March–April 2008.
Available Here
Article "As reverberations from the stricken mortgage market reach the real economy, Robin Blackburn reveals the origins of the crunch in the shadowy realms of financialization. Precedents from the bubbles and crash of the 1920s, warnings from pioneers and venture capitalists, and proposals for how to turn the crisis to socially redistributive effect."
Interview: Dr. Michael Hudson - Part I: FIRE Economy in Crisis
iTulip April 7, 2008
Available Here
Interview transcript "Eric Janszen interviews Dr. Michael Hudson on: • Interest rates have decoupled from the real economy • Marginal repairs cannot cure structural failures • "Poom" inflation spiral has arrived "
Interview: Dr. Michael Hudson - Part II: FIRE Economy in Crisis
iTulip April 7, 2008
Available Here
Interview transcript "Eric Janszen interviews Dr. Michael Hudson on: • Crisis in the FIRE economy • Future liabilities of inflated asset prices • Can Transportation, Energy, and Communications Infrastructure (TECI) save us? "
L. Randall Wray
Financial Markets Meltdown. What Can We Learn from Minsky?
Levy Economics Institute, Public Policy Brief April 2008
Available Here
Article "Randall Wray explains today’s complex and fragile financial system, and how the seeds of crisis were sown by lax oversight, deregulation, and risky innovations such as securitization. He estimates that the combined losses throughout the entire financial sector could amount to several trillion dollars, and that the United States will feel the effects of the crisis for some time—perhaps a decade or more. Wray recommends enhanced oversight of financial institutions, much larger stimulus packages, and creation of a new institution in line with President Franklin D. Roosevelt’s Home Owners’ Loan Corporation."
Paul Davidson
Securitization, Liquidity and Market Failure
Challenge, May 2008
Available Here
Article ""
The Worsening U.S. Debt Crisis
An interview with Economist Michael Hudson
by Mike Whitney
Global Research, September 9, 2008
Available Here
Interview transcript ""
Walden Bello
Wall Street Meltdown Primer
Washington, DC: Foreign Policy In Focus, September 26, 2008
Available Here and Here
Article ""
James Buchan. The great crash of 2008
The New Statesman 25 September 2008
Available Here
Article "The world's financial institutions are gripped by fear, yet policymakers can do nothing. They are ignorant of how banks now work and have to take poacher-turned-gamekeeper Henry Paulson at his word"
Paul Davidson
Health warning for a computer age
Asia Times Online Nov 2008
Available Here
Article "The winter of 2007-2008 will prove to be one of discontent and the beginning of the end in the classical theory of the efficiency of global financial markets. For more than three decades, mainstream economists had preached, and politicians had swallowed, the myth of the efficiency of such free markets. Those who do not study the lessons of history are bound to repeat its errors. Economists forgot the events of the Great Depression and the collapse of unfettered financial markets that followed the "Roaring Twenties" prosperity. For history has repeated itself with the growth of deregulated markets and the prosperity of the 1990s ending up in 2008 with the greatest recession since the Great Depression …….."
Tristan Ewins
World Financial Crisis - Where to From Here? Zmag,November 18, 2008
Available Here
Article ""
Peter Gowan
Crisis in the Heartland New Left Review 55, January-February 2009
Available Here
Article "Against mainstream accounts, Peter Gowan argues that the origins of the global financial crisis lie in the dynamics of the New Wall Street System that has emerged since the 1980s. Contours of the Atlantic model, and implications—geopolitical, ideological, economic—of its blow-out."
Paul Davidson."RISK AND UNCERTAINTY IN ECONOMICS"
Paper presented at the conference on “The Economic Recession and the State of Economics”, House of Lords, Westminster, London, February 6, 2009
Available Here
Article "Politicians and talking heads on television are continuously warning the public that the current economic crisis that began in 2007 as a small sub prime mortgage default problem in the United States has created the greatest economic catastrophe since the Great Depression. What is rarely noted , however, is that what is significant about this current economic crisis is that it origin, like the origin of the Great Depression, lies in the operations of free (deregulated) financial markets......."
Barry Eichengreen and Kevin H. O’Rourke
A Tale of Two Depressions
VOX, 6 April 2009, Updated March 2010
Available Here
Online article "Often cited comparisons – which look only at the US – find that today’s crisis is milder than the Great Depression. In this column, two leading economic historians show that the world economy is now plummeting in a Great-Depression-like manner. Indeed, world industrial production, trade, and stock markets are diving faster now than during 1929-30. Fortunately, the policy response to date is much better.
The June update shows that trade and stock markets have shown some improvement without reversing the overall conclusion -- today's crisis is at least as bad as the Great Depression. "
Steve Keen
Not Keen on Bailouts. Bailing out the Titanic with a Thimble
Available Here
Online article "The now commonplace observation in the media that this financial crisis is "the worst since the Great Depression" may appear to be hyperbole to many academic economists. It is not—if anything, it may understate the scale of the crisis."
James K. Galbraith
FINANCIAL AND MONETARY ISSUES AS THE CRISIS UNFOLDS
Levy Economics Institute, Public Policy Brief No 103, 2009 Available Here
Article
John Bellamy Foster and Fred Magdoff
The Great Financial Crisis: Causes and Consequences
Monthly Review Press U.S. Feb 2009
Available Here
Book REVIEW: "Those of us who are dissatisfied with the analyses of the financial-economic meltdown of 2008 that attribute it to easily remediable amistakesa on the part of financial institutions, regulators, or policy-makers can learn a lot from John Bellamy Foster and Fred Magdoffas The Great Financial Crisis: Causes and Consequences. Foster and Magdoff follow up the theses of Paul Sweezy, Paul Baran, and Harry Magdoff that diagnose the structural problems of U.S. capitalism in its chronic tendency toward stagnation rooted in inadequate business investment and leading to slow growth, unemployment of labor, and low utilization of capital. This book makes the case that the excesses of financialization and the widening inequality of income distribution are themselves indirect effects of stagnation in the real economy, and explains with sobering clarity why the roots of this crisis may turn out to be deep and difficult to address with conventional policy measures. DUNCAN K. FOLEY, Leo Model Professor of Economics, New School for Social Research"
Edward Fullbrook (Ed)
Crash. Why it happened and what to do about it
Available Here
Free online Book EXTRACT FROM INTRO: "Never has a financial crisis been so global as that of 2008. Yet the degree to which the financial sectors of globally integrated economies have contributed to and suffered from that crisis has varied enormously. Iceland’s financial sector bankrupted its country, and those of the US and the UK narrowly escaped total meltdown. The advanced banking systems of China and Singapore, on the other hand, have reported no major casualties, and those of many European countries, although scathed, have escaped the debacles of their American and British counterparts. These differences are epistemologically significant. Since all nations forming the global economy, large and small, were subject to the same temptations and the same possibilities for errors of judgement and entrapment in ideological black holes, it follows that the levels of competence and incompetence characterizing bankers, regulators and economists advising them has between nations been hugely divergent. "
Thomas I. Palley
America’s Exhausted Paradigm: Macroeconomic Causes of the Financial Crisis and Great Recession
[New America Foundation, USA 2009] published in real-world economics review, issue no. 50 2009
Available Here
Article "Abstract This report traces the roots of the current financial crisis to a faulty U.S. macroeconomic paradigm. One flaw in this paradigm was the neo-liberal growth model adopted after 1980 that relied on debt and asset price inflation to drive demand in place of wage growth. A second flaw was the model of U.S. engagement with the global economy that created a triple economic hemorrhage of spending on imports, manufacturing job losses, and off-shoring of investment. Deregulation and financial excess are important parts of the story, but they are not the ultimate cause of the crisis. Instead, they facilitated the housing bubble and are actually part of the neo-liberal model, their function being to fuel demand growth based on debt and asset price inflation. As the neo-liberal model slowly cannibalized itself by undermining income distribution and accumulating debt, the economy needed larger speculative bubbles to grow. The flawed model of global engagement accelerated the cannibalization process, thereby creating need for a huge bubble that only housing could provide. However, when that bubble burst it pulled down the entire economy because of the bubble’s massive dependence on debt. The old post–World War II growth model based on rising middle-class incomes has been dismantled, while the new neo-liberal growth model has imploded. The United States needs a new economic paradigm and a new growth model, but as yet this challenge has received little attention from policymakers or economists."
     
John Thornhill
Agitation as middle-class Europe struggles to cope
Financial Times March 11 2009
Available Here
Newspaper article EXTRACT: "Economics is convulsing European politics. Governments have fallen in Iceland and Latvia; strikes or protests have erupted in Greece, Ireland, France, Germany, Britain, Lithuania, Ukraine and Bulgaria. Financial turmoil has shaken even the continent’s furthest-flung outposts: the French Caribbean island of Guadeloupe has been ravaged by violent strikes, while Russia flew riot police into ice-bound Vladivostok to quell street protests. This spasm of unrest was hardly expected when the crisis broke in the summer of 2007: many Europeans believed they would be spared the worst effects of a disaster forged in the suburbs of the US. Since then, as the crisis has spread, initially sanguine forecasts have given way to ever more gloomy predictions........."
Ismael Hossein-Zadeh,
The Vicious Circle of Debt and Depression
Available Here
Online article Extract: "Never before has so much debt been imposed on so many people by so few financial operatives—operatives who work from Wall Street, the largest casino in history, and a handful of its junior counterparts around the world, especially Europe.......What is rather unique in the case of the current global sovereign debt is that it is largely private debt billed as public debt; that is, debt that was accumulated by financial speculators and, then, offloaded onto governments to be paid by taxpayers as national debt. Having thus bailed out the insolvent banksters, many governments have now become insolvent or nearly insolvent themselves, and are asking the public to skimp on their bread and butter in order to service the debt that is not their responsibility.
After transferring trillions of dollars of bad debt or toxic assets from the books of financial speculators to those of governments, global financial moguls, their representatives in the State apparatus and corporate media are now blaming social spending (in effect, the people) as responsible for debt and deficit!......"
James K. Galbraith
THE GREAT CRISIS AND THE AMERICAN RESPONSE?
Levy Economics Institute, Public Policy Brief 112, June 2010
Available Here
Article EXTRACT: "…….. the financial industry was largely overrun by the most aggressive practitioners of the art of originating questionable mortgages. I’ll go further than that: the art of originating mortgages that were plainly fraudulent. It was an environment in which the lenders certainly knew that the borrowers would not be in a position to continue to service those mortgages past, at most, three or four years—mortgages that were in fact designed to have that result……… there is no nonfraudulent reason for a lender to knowingly accept an inflated appraisal on a house. No known explanation of that can be construed as innocent. Why did they do it? The business model was no longer one of originating mortgages, holding them, and earning income as home owners paid off their debts; it was one of originating the mortgage, taking a fee, selling the mortgage to another entity, and taking another fee. To do that, the mortgages had to be packaged. They had to be sprinkled with the holy water of quantitative risk-management models. They had to be presented to ratings agencies and blessed and sanctified, at least in part, as triple-A, so that they could legally be acquired by pension funds and other fiduciaries, which have no obligation to do any due diligence beyond looking at the rating……… I think it’s fair to say that if this sounds to you like a criminal enterprise, that’s because that’s exactly what it was…… "
Goldman Sachs faces criminal investigation
Guardian, 30 April 2010 Available Here

and
Goldman Sachs accused of dodging US inquiry into credit crunch
Guardian, 7th June 2010 Available Here

and
Goldman Sachs handed record $550m fine over Abacus transaction
Guardian, 16th July 2010 Available Here
Newspaper articles EXTRACT: "According to the SEC, Goldman cheated customers in a 2007 deal concerning a mortgage-backed security known as a "synthetic CDO" called Abacus. The bank is accused of failing to tell investors that a US hedge fund, Paulson & Co, was going "short" by betting that the security would decline in value. Paulson is alleged to have been allowed to stuff Abacus with mortgages doomed to default..."
Morgan Stanley may be next target of US prosecutors
Guardian, Wednesday 12 May 2010
Available Here
Newspaper article EXTRACT: "Morgan Stanley's shares slumped by 4% in early trading on the New York stock exchange after the Wall Street Journal named the bank as a target for a criminal investigation into controversial tactics adopted by firms to bet on a slump in home loans at the beginning of the global financial crisis. Prosecutors are said to looking at packages of mortgage-backed securities issued in 2006.....Morgan Stanley was involved in designing the two synthetic collateralised debt obligations (CDOs) sold to investors. The bank's trading desk is said to have sometimes taken "short" positions on them, betting they would fall in value. ...."
Wall Street banks investigated over links to ratings agencies
Inquiry into bid to find whether banks cheated in hunt for high credit ratings includes Citigroup, Goldman Sachs, Merrill Lynch and Morgan Stanley
Guardian, Wednesday 13 May 2010
Available Here
Newspaper article EXTRACT: "An allegedly "cosy" relationship between top Wall Street banks and credit rating agencies is under investigation by New York's attorney general, who has issued a flurry of subpoenas to examine whether leading financial institutions cheated in the hunt for valuable triple-A grades. ....Sources close to the investigation revealed that the banks targeted by the inquiry are Goldman Sachs, Morgan Stanley, UBS, Citigroup, Credit Suisse, Deutsche Bank, Credit Agricole and Merrill Lynch, which is owned by Bank of America. Subpoenas have also gone to the three major ratings agencies – Standard & Poor's, Moody's and Fitch. "
Philip Stephens
Three years on, the markets are masters again
Financial Times July 29th 2010
Available Here
Newspaper article EXTRACT: "It has been three years since the roof started to fall in. And only a year and a bit since the more faint-hearted stocked their cellars with bottled water and canned food lest the financial crash presage a descent into anarchy. So what has happened since? Simple: not much. The markets (and the bankers) still rule. Look back at the grand declarations made by political leaders as the global financial system teetered on the edge of self-destruction. .........Finance, we were assured, would be pulled from its gilded pedestal. Main Street would reassert its primacy over Wall Street. The laisser faire capitalism of the Washington Consensus had had its day. The world’s richest economies would turn their minds to nurturing real, as opposed to financial, engineering....... There has also, of course, been one really big change: hundreds of billions of dollars in toxic assets that once sat on the books of the banks have been piled on top of the deficits caused by the crash-induced recession. Families are paying the bankers’ bills through rising taxes, shabbier public services and higher unemployment...... "
Also see specific Newspaper Comment and Correspondence on these these issues:-
The Role of Fiscal Deficits
Global Imbalances