The Subprime Turmoil: What's Old, What's New, and What's Next

@article{Calomiris2009TheST,
  title={The Subprime Turmoil: What's Old, What's New, and What's Next},
  author={Charles W. Calomiris},
  journal={The Journal of Structured Finance},
  year={2009},
  volume={15},
  pages={52 - 6}
}
This article considers the origins of the subprime turmoil and the way the financial system has responded to it. It explains that there are both old and new components in both the origins and the propagation of the subprime shock. Old components include government financial subsidies for bearing risk, accommodative monetary policy, and adverse selection facilitated by asymmetric information. New components include the central role of agency problems in asset management, the ability of financial… 
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