Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/31596 
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dc.contributor.authorFernandez, Luisaen
dc.contributor.authorKaboub, Fadhelen
dc.contributor.authorTodorova, Zdravkaen
dc.date.accessioned2010-05-14T11:09:20Z-
dc.date.available2010-05-14T11:09:20Z-
dc.date.issued2008-
dc.identifier.urihttp://hdl.handle.net/10419/31596-
dc.description.abstractThe paper uses Minsky's financial instability hypothesis as an analytical framework for understanding the subprime mortgage crisis and for introducing adequate reforms to restore economic stability. We argue that the subprime crisis has structural origins that extend far beyond the housing and financial markets. We further argue that rising inequality since the 1980s formed the breeding ground for the current financial markets meltdown. What we observe today is only the manifestation of the ingenuity of the market in taking advantage of moneymaking opportunities, regardless of the consequences. The so-called democratization of homeownership rapidly turned into record-high delinquencies and foreclosures. The sudden turn in market expectations led investors and banks to reevaluate their portfolios, which brought about a credit crunch and widespread economic instability. The Federal Reserve Bank's intervention came too late and failed to usher in adequate regulation. Finally, the paper argues that a true democratization of homeownership is only possible through job creation and incomegeneration programs, rather than through exotic mortgage schemes.en
dc.language.isoengen
dc.publisher|aLevy Economics Institute of Bard College |cAnnandale-on-Hudson, NYen
dc.relation.ispartofseries|aWorking Paper |x548en
dc.subject.jelB52en
dc.subject.jelB58en
dc.subject.jelE12en
dc.subject.jelE44en
dc.subject.jelB52en
dc.subject.jelG21en
dc.subject.jelG24en
dc.subject.ddc330en
dc.subject.keywordMinskyen
dc.subject.keywordfinancial instabilityen
dc.subject.keywordWall Streeten
dc.subject.keywordsubprime mortgagesen
dc.subject.keywordreal estateen
dc.subject.keywordfull employmenten
dc.subject.keywordinequalityen
dc.titleOn democratizing financial turmoil: a Minskian analysis of the subprime crisis-
dc.typeWorking Paperen
dc.identifier.ppn58508811Xen
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen

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