Russell Sage-Century Foundation "Rethinking Finance" Conference: Socially-Useful Finance
Alan Blinder: "If Chairman Bernanke Were Here--Which He Was--What Would You Tell Him About How to Implement This?"

Russell Sage-Century Foundation "Rethinking Finance" Conference: Ben Bernanke

$500B in MBS losses:

  • leading via a financial accelerator to a $20T collapse in global financial wealth.
  • contrast with dot-com bubble collapse.

Bernanke's points:

  • shadow banks: maturity, liquidity, and risk transformation.
  • excess demands for safe assets in a global economy with a global savings glut.
  • concentration of risk.
  • originate and fail to distribute.
  • rating agencies.
  • complexity.
  • regulatory failures.

http://www.federalreserve.gov/newsevents/speech/bernanke20120413a.htm

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