| Description |
1 online resource (30 pages) : color illustrations |
| Series |
IMF working paper ; WP/12/162 |
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IMF working paper ; WP/12/162.
|
| Contents |
Cover; Contents; Glossary; Executive Summary; I. Introduction: Our Search for the Smoking Gun; Figures; 1. Leverage? What Leverage?; II. The Flow of Funds Accounts: From the Macro to the Financial; A. Nonfinancial Private Sector Net Worth: A Rational Gambit; 2. Was it Debtor Leverage?; B. Household Finances: Let the Good Times Roll; 3. Was it Households as Net Debtors?; C. Nonfinancial Business Finances: The Cash Cow; 4. Was it a Borrowing Spree by Firms?; D. Government Finances: Use that Firepower; 5. Was it Foreigners Buying U.S. Treasuries? |
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E. Foreign Investors in the U.S. Credit Markets: Pay to Play6. Was it Foreigners Buying Everything?; F. Gross and Net Credit Growth: Strong for Long; 7. Was it Credit Growth?; G. Financial Sector Size and ""Churning"" Activity: Inward We Look; 8. Was it Financial Sector Size?; H. Financial Sector Structure and ""Shadow Banking"": Brave New World; 9. Was it ""Shadow Banking""?; I. Private-Label Securitization: Bankruptcy-Remote Indeed; 10. Was it the Bundling?; J. The Secured Wholesale Funding Chain: In Collateral We Trust; 11. Was it the Funding Model? |
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III. Conclusion: Investment Banks as the Fulcrum12. In Summary; References |
| Summary |
This paper questions the view that leverage should have forewarned us of the global financial crisis of 2007-09, pointing to several gearing indicators that were neither useful portents of the onset of the crisis nor of its ferocity. Instead it shows, first, that the use of ill-suited collateral in the secured funding operations of U.S.-based investment banks was the fatal link between the collapse of structured finance and the global malfunction of funding markets that turbocharged the downdraft; and, second, that this insight (and others) can be decrypted from the Flow of Funds Accounts of the United States |
| Notes |
Title from PDF title page (IMF Web site, viewed June 25, 2012) |
| Bibliography |
Includes bibliographical references |
| Notes |
"Strategy, Policy, and Review Department." |
|
"June 2012." |
|
English |
| Subject |
Global Financial Crisis, 2008-2009.
|
|
Financial crises -- United States
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Financial leverage -- United States
|
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Securities -- United States
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Investment banking -- United States
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BUSINESS & ECONOMICS -- Finance.
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Financial crises
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Financial leverage
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Investment banking
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Securities
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United States
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| Form |
Electronic book
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| Author |
Bayoumi, Tamim A.
|
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International Monetary Fund. Strategy, Policy, and Review Department.
|
| ISBN |
9781475545128 |
|
1475545126 |
|
1475504713 |
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9781475504712 |
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1475597606 |
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9781475597608 |
|
1475516924 |
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9781475516920 |
|
