Securitized Banking and the Run on Repo
- Gary B. Gorton, Andrew Metrick
- Economics
- 1 August 2009
The Panic of 2007-2008 was a run on the sale and repurchase market (the “repo” market), which is a very large, short-term market that provides financing for a wide range of securitization activities…
Facts and Fantasies about Commodity Futures
- Gary B. Gorton, K. Rouwenhorst
- Economics
- 1 June 2004
For this study of the simple properties of commodity futures as an asset class, an equally weighted index of monthly returns of commodity futures was constructed for the July 1959 through December…
Banking panics and business cycles
- Gary B. Gorton
- Economics
- 1 December 1988
Using a century of newly constructed data, competing theories explaining banking panics are tested. The evidence shows that banking panics during the U.S. national banking era (1865-1914) were the…
The Fundamentals of Commodity Futures Returns
- Gary B. Gorton, F. Hayashi, K. Rouwenhorst
- Economics
- 1 July 2007
Commodity futures risk premiums vary across commodities and over time depending on the level of physical inventories, as predicted by the Theory of Storage. Using a comprehensive dataset on 31…
Universal Banking and the Performance of German Firms
- Gary B. Gorton, F. Schmid
- Economics, Business
- 1 February 1996
Slapped by the Invisible Hand: The Panic of 2007
- Gary B. Gorton
- Economics
- 8 March 2010
Originally written for a conference of the Federal Reserve, Gary Gorton's "The Panic of 2007" garnered enormous attention and is considered by many to be the most convincing take on the recent…
Stock Market Efficiency and Economic Efficiency: Is There a Connection?
- James Dow, Gary B. Gorton
- Economics, Business
- 1 August 1995
In a capitalist economy prices serve to equilibrate supply and demand for goods and services, continually changing to reallocate resources to their most efficient uses. However, secondary stock…
The Subprime Panic
- Gary B. Gorton
- Psychology
- 30 September 2008
Understanding the ongoing credit crisis or panic requires understanding the designs of a number of interlinked securities, special purpose vehicles, and derivatives, all related to subprime…
Slapped in the Face by the Invisible Hand: Banking and the Panic of 2007
- Gary B. Gorton
- Economics
- 9 May 2009
The 'shadow banking system' at the heart of the current credit crisis is, in fact, a real banking system – and is vulnerable to a banking panic. Indeed, the events starting in August 2007 are a…
The Panic of 2007
- Gary B. Gorton
- Economics
- 25 August 2008
How did problems with subprime mortgages result in a systemic crisis, a panic? The ongoing Panic of 2007 is due to a loss of information about the location and size of risks of loss due to default on…
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