December, 2008

The GSE Supply Curve for Nonprime Products Kept Shifting to the Right

by Lawrence H. White
The Conversation
December 18th, 2008

Brad DeLong rejects “the claim that the crash in the mortgage market was in some sense the fault of excessively risky lending by the GSEs Fannie Mae and Freddie Mac which pulled the private sector along behind them,” based on the observation that “Fannie Mae and Freddie Mac lost market share as all the loans [...]

Read: The GSE Supply Curve for Nonprime Products Kept Shifting to the Right

Thank God for Anonymous Readers!

by William K. Black
The Conversation
December 18th, 2008

I’m back from Utrecht and eager to rejoin the discussion, which has been aided greatly by the contributions of an anonymous reader who has obviously been in the tranches.  Let me first respond to the specific questions my colleagues have posed to me. 
Do I argue that agency problems in the private sector are both an important [...]

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Supply Curves Slope Up, Demand Curves Slope Down

by J. Bradford DeLong
The Conversation
December 18th, 2008

There is one huge argument against the claim that the crash in the mortgage market was in some sense the fault of excessively risky lending by the GSEs Fannie Mae and Freddie Mac which pulled the private sector along behind them: it is that Fannie Mae and Freddie Mac lost market share as all the [...]

Read: Supply Curves Slope Up, Demand Curves Slope Down

I Am Not Now, nor Have I Ever Been, a Monkey Psychologist

by Lawrence H. White
The Conversation
December 16th, 2008

In response to my observation that he had put little emphasis on the real estate and other malinvestments that kicked off our financial turmoil, Bradford DeLong writes:
That there are “malinvestments… wealth-squandering mistakes” … is simply not news.
I understand that Professor DeLong’s main interest lies elsewhere, in the question of what has made the global decline [...]

Read: I Am Not Now, nor Have I Ever Been, a Monkey Psychologist