Lessons from the Subprime Meltdown
L. Randall Wray
Economics Working Paper Archive from Levy Economics Institute
Abstract:
This paper uses Hyman P. Minsky's approach to analyze the current international financial crisis, which was initiated by problems in the U.S. real estate market. In a 1987 manuscript, Minsky had already recognized the importance of the trend toward securitization of home mortgages. This paper identifies the causes and consequences of the financial innovations that created the real estate boom and bust. It examines the role played by each of the key players—including brokers, appraisers, borrowers, securitizers, insurers, and regulators—in creating the crisis. Finally, it proposes short-run solutions to the current crisis, as well as longer-run policy to prevent "it" (a debt deflation) from happening again.
Date: 2007-12
New Economics Papers: this item is included in nep-fmk, nep-his, nep-pke and nep-ure
References: Add references at CitEc
Citations: View citations in EconPapers (14)
Downloads: (external link)
http://www.levyinstitute.org/pubs/wp_522.pdf (application/pdf)
Related works:
Journal Article: Lessons from the Subprime Meltdown (2008) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:lev:wrkpap:wp_522
Access Statistics for this paper
More papers in Economics Working Paper Archive from Levy Economics Institute
Bibliographic data for series maintained by Elizabeth Dunn ( this e-mail address is bad, please contact ).