Savings and Loan Crisis: Aftermath The S&L crisis was arguably the most catastrophic collapse of the banking industry since theGreat Depression. Across the United States, more than 1,000 S&Ls had failed by 1989, essentially ending what had been one of the most secure sources of home mortga...
The Fed, by law, can only purchase government-backed debt, but in severe emergencies, it’ll create a special “lending facility” that it’ll fund, along with funding from the Treasury Department as a backstop. Then, it’ll use that facility to purchase other types of debt, such as ...
Well, the pandemic was a hard time for a lot of commercial customers and a few industries, in particular. Some banks really leaned into it and decided to lend through the cycle. Now with the backstop of the federal government and Triple P, but they did proactively lean into that. They ...
The Fed’s explicit public policy goal should be to push consumer mortgage rates down to 3% or below. The Fed should use continuous MBS purchases to drive down yields on MBS until it is economic for the industry to originate government and conventional mortgages with 3% coupons. By putting a...