I have been meaning to post this delightful slide book of how the crisis came about, via the Craven Brothers.

Be sure to select “Full Page” in the lower left hand menu . . .

Category: Bailouts

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

5 Responses to “Age of Deleveraging”

  1. Basilisc says:

    Excellent find, Barry – looking forward to reading it.

    But I’ve noticed one mistake right off the bat. Under “The age of leverage (1982-2008)”, the authors cite “Federal debt increased dramatically due to … bi-partisan failure to balance budgets …”

    Anyone older than 30 with a slightly functioning memory knows that this is a completely false picture. In 2000, the US was running a substantial surplus. The debt was falling steadily. Worrywarts (chief among them Mr A Greenspan) thought the risk was that the US would run out of tradeable Treasury debt.

    The increase in Federal debt from 1982-2008 in fact happened mostly in two waves, both under Republican presidents:
    1. 1982-1993
    2. 2001-2008

    The myth that Republicans are either more fiscally responsible than Democrats, or as fiscally responsible as Democrats, is one of those things that seems to be embedded in popular culture for some reason. And it seems especially strongly embedded among financial professionals, who supposedly are immune to popular misconceptions and take a cynical, empirical view of things. I’ll never understand why that is.

  2. Sechel says:

    I’ve been amazed that as a socieety we’re deleveraging two ways, From defaults and loan modifications as well as apparently a record wave of “cash in refis”


    In the fourth quarter, 46 percent of borrowers who refinanced their primary
    mortgages brought cash to settlement to lower the balance on their loans,
    Freddie Mac said. That’s the highest share of so-called “cash-in” refinances
    since the company started tracking the numbers in 1985.

  3. jimcos42 says:

    The devil in the practical implementation. “Alternative investments” for Jason and Melody Sixpack who probably aren’t even funding a Roth IRA? You’re s——– me. Even for those who can afford AI’s, they look like a clever solutions in search of buyers. Rev up the attorneys. Wall Street’ shenanigans never end.

  4. Gatsby says:

    This is awsome…thanks for posting.

  5. CentralIowaFarmer says:

    aye aye jimcos42

    I’m wondering what the heck “alternative investments” means…coins and stamps? Emu farms? Janitorial services?

    I’m thinking purchase a cement business and start advertising “bunkers.”

    My take is, the authors are saying that “open markets” are no longer trustworthy – put your cash into something that you can see, taste, smell, etc….