Yesterday we created a simple example of Large Bank, which made some bad loans and now has two problems: It doesn’t have enough capital. It has downside risk on its balance sheet due to the uncertain value of these bad loans. That downside risk makes the firm’s value uncertain and scares away investors. Today we […]
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Tag Archives: federal reserve chairman
President's Working Group on Financial Markets documents
14 October 2008 
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The President’s Working Group on Financial Markets met at 8:30 AM today to announce the specifics of the new policy actions described by the President in the Rose Garden earlier this morning. This note is just a collection of primary source documents from today’s announcement. Generalists will likely be interested in the first six documents, […]
Read moreAddress by President Bush on financial markets
24 September 2008 Comments Off
President Bush gave a major policy address on the State Floor of the White House this evening. THE WHITE HOUSE State Floor 9:01 P.M. EDT THE PRESIDENT: Good evening. This is an extraordinary period for America’s economy. Over the past few weeks, many Americans have felt anxiety about their finances and their future. I understand […]
Read moreRose Garden Statement by President Bush on the Economy
19 September 2008 Comments Off
Here’s what President Bush said at 10:45 AM today in the Rose Garden. This is really important. Good morning. I thank Treasury Secretary Hank Paulson, Federal Reserve Chairman Ben Bernanke, and SEC Chairman Chris Cox for joining me today. This is a pivotal moment for America’s economy. Problems that originated in the credit markets — […]
Read moreStatement by Treasury Secretary Hank Paulson
19 September 2008 Comments Off
The President will speak at 10:45 AM. I’ll send his remarks soon after he has spoken. Here’s what Secretary Paulson said shortly after 10 AM this morning. Last night, Federal Reserve Chairman Ben Bernanke, SEC Chairman Chris Cox and I had a lengthy and productive working session with Congressional leaders. We began a substantive discussion […]
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