Tuesday 16, June 2009 by
PPIP, TARP, TALF, FDIC, SCAP and the US economy
The US financial and economic crisis has had severe global repercussions. The run-up to the crisis involved a substantial and widespread underestimation of risks—especially in housing—and growing leverage and liquidity mismatches, in particular through off-balance-sheet vehicles and non-bank entities in less-regulated areas. Against a backdrop of easy global financial conditions, this dynamic fed an unsustainable build-up of financial imbalances, above all in housing markets.
