Index
Index AAA-rated asset-backed bonds, 7, 8, 13, 16, 20, 27, 36, 38–41, 43, 54, 56, 72, 95, 119, 120, 182, 191, 194–95, 220, 289– 91, 299n6, 300nn11, 12, 301nn15, 16, 303n19, 305n29, 309n39, 311n8. See also Rating agencies; Recourse Rule AAA corporate bonds 218 ABN AMRO, 197 ABX index, 117–18, 124, 194, 195, 220, 221 Acemoglu, Daron, 2, 51, 82, 285–88, 294 Acharya, Viral V., 10, 20, 21, 40, 51, 190, 198, 233, 234, 276, 283, 291, 299n6, 303n19, 314n2 Adelson, Mark, 15, 53 Adjustable-rate mortgages (ARMs), 7, 11, 17, 43, 109, 117, 119, 122, 124, 126, 140, 158, 159, 166, 183, 184, 197 Adrian, Tobias, 315n8 Ahrend, Rudiger, 156, 313n3 AIG, 69, 95, 119, 124, 126, 170, 171, 195, 238–42, 301n16, 302–3n18, 309n39, 311nn10, 11, 312n21 Akerlof, George A., 200 Alchian, Armen A., 47, 304n25 Alonso, Irasema, 318n3 Alt-A mortgages, 4–5, 11, 12, 17, 176, 177–80, 182, 197, 219 A.M. Best, 232 Ambac, 124, 126 American Economic Association, 299n8, 314n6 American Express, 242 Ameriquest, 119, 123 Anderson, Michael, 248 Anderson, P. W., 271 Animal spirits, 200 Annuities, 97, 246–47 Antitrust laws, 143 Aoki, Masanao, 273 Arab oil embargo (1973), 89 Arrow-Debreu models, 265 Ashcraft, Adam B., 198 Asset-backed securities (ABS), 9, 28, 36, 94, 95, 97, 98, 100, 182, 186, 187–89, 196, 202, 205, 206, 208–16, 222–23, 300n12, 315n4. See also CDOs; MBSs Asset-backed commercial paper (ABCP), 190, 191, 195, 197, 198, 214, 215–16, 222–24, 234–35, 315n7 Asset bubbles, 6, 112, 113, 150; Dutch tulip mania, 107; liquidity and, 107; probabilistic determinations of, 146; popping of, 107–8; produced in laboratories , 107–8, 111; South Sea bubble, 75, 107; psychology of, 55–56. See also housing bubble Assets versus liabilities, 184–85 AT&T, 78 Automobile production during 1920s, 128, 312n23, 313n24 Avery, Robert B., 175 Bagehot, Walter, 263 Bailey, Thomas, 307n39 Bailouts, 4, 5, 6, 26, 28, 37, 47, 54, 65, 186, 227, 255, 259–61, 302n18, 314n7. See also Bear Stearns; GSEs; Lehman Brothers Bair, Sheila C., 42, 61, 62 Bajaj, Vikas, 114 Banerjee, Abhijit V., 277 Bankers: blame, 140–41, 149; incentives of, 34–42. See also Bonuses; Executive compensation 344 Index Bank failures, 18, 60, 85, 87, 88, 92, 110, 238, 239, 241, 282 Bank for International Settlements (BIS), 21, 51–53, 186, 202, 208, 215, 298– 99n6, 303n20, 305n28 Bank holding companies (BHCs), 20, 88, 97 Banking Act of 1933, 85, 86, 88, 90, 99. See also Glass-Steagall Act Banking Act of 1935, 86, 99 Banking theory, 184–85 Bank of America, 20, 43, 199, 242, 303n22 Bank runs, 60, 61, 85, 86, 201, 214–15, 222–23, 241, 281–82, 307n37 Bartlett, Bruce, 298n5 Barlevy, Gadi, 287 Barnett-Hart, Anna Katherine, 36 Basel I, 21, 23–27, 29, 30, 33–36, 42, 44– 46, 48, 54, 56, 57, 61, 181–82, 186, 190–91, 202, 204–6, 209–10, 213–14, 222, 276, 288, 309n39; 0-percent risk weight (sovereign debt), 25, 27, 28, 190, 205, 214; 20-percent risk weight (agency debt), 25, 26, 28, 42, 46, 62, 205; 50-percent risk weight (mortgage debt), 25, 206, 209, 214; 100-percent risk weight (commercial debt), 25, 206; 200-percent risk weight, 206, 300n12; adequately capitalized banks, 21, 29, 36, 181, 186, 205–6, 209–10, 234, 315n3; riskweight, 24–25, 29–30, 51, 193, 205, 209, 288, 316n12; tier-1, 23, 36, 44, 205–7, 224, 315n2; tier-2, 23, 44, 205–7, 315n2; well-capitalized banks, 29, 35–36, 181, 186, 190, 206, 209–10, 308n39, 315n3. See also Leverage ; Basel II; Basel III; Recourse Rule Basel II, 21, 28, 42, 48, 51, 52, 57, 181, 300n12. See also Recourse Rule Basel III, 21 Basel Committee on Banking Supervision (BCBS), 25, 27, 32, 58, 186, 190, 202, 204–6, 214, 315n2 Baskin, Jonathan, 75, 81 Bass, J. Kyle, 310n6 Bayes, Reverend Thomas, 70 BB&T Bank, 45 Beal, D. Andrew, 45, 304n23 Beal Bank, 45 Bear Stearns, 5, 18, 31, 40–42, 99, 119, 171, 178, 197, 209, 225, 238, 239, 241, 247, 255, 279, 298n5, 300n14, 311n11, 314n7 Bebchuk, Lucian A., 35 Benston, George J., 175 Bent, Bruce, 72 Berger, Allen N., 90, 94 Bergsman, Steve, 5 Berkshire Hathaway, 38, 79. See also Buffett , Warren; Munger, Charlie Bernanke, Ben, 40, 50, 126, 132, 135, 168, 170, 241, 281, 282, 299n7 Bernt, Antje, 184 Bertoneche, Marc, 76 Bewley, Truman E., 317n3 Bhattacharya...
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