05969oam 22012494 450 991082541420332120240402045314.01-4755-1692-41-4755-9760-6(CKB)2670000000278915(EBL)1606811(SSID)ssj0000942139(PQKBManifestationID)11505492(PQKBTitleCode)TC0000942139(PQKBWorkID)10971277(PQKB)10698157(Au-PeEL)EBL1606811(CaPaEBR)ebr10627136(OCoLC)796678874(IMF)WPIEE2012162(IMF)WPIEA2012162(MiAaPQ)EBC1606811(EXLCZ)99267000000027891520020129d2012 uf 0engurcn|||||||||txtccrLeverage? What Leverage? A Deep Dive into the U.S. Flow of Funds in Search of Clues to the Global Crisis /Tamim Bayoumi, Ashok Bhatia1st ed.Washington, D.C. :International Monetary Fund,2012.1 online resource (31 p.)IMF Working PapersIMF working paper ;WP/12/162Description based upon print version of record.1-4755-4512-6 1-4755-0471-3 Includes bibliographical references.Cover; Contents; Glossary; Executive Summary; I. Introduction: Our Search for the Smoking Gun; Figures; 1. Leverage? What Leverage?; II. The Flow of Funds Accounts: From the Macro to the Financial; A. Nonfinancial Private Sector Net Worth: A Rational Gambit; 2. Was it Debtor Leverage?; B. Household Finances: Let the Good Times Roll; 3. Was it Households as Net Debtors?; C. Nonfinancial Business Finances: The Cash Cow; 4. Was it a Borrowing Spree by Firms?; D. Government Finances: Use that Firepower; 5. Was it Foreigners Buying U.S. Treasuries?E. Foreign Investors in the U.S. Credit Markets: Pay to Play 6. Was it Foreigners Buying Everything?; F. Gross and Net Credit Growth: Strong for Long; 7. Was it Credit Growth?; G. Financial Sector Size and ""Churning"" Activity: Inward We Look; 8. Was it Financial Sector Size?; H. Financial Sector Structure and ""Shadow Banking"": Brave New World; 9. Was it ""Shadow Banking""?; I. Private-Label Securitization: Bankruptcy-Remote Indeed; 10. Was it the Bundling?; J. The Secured Wholesale Funding Chain: In Collateral We Trust; 11. Was it the Funding Model?III. Conclusion: Investment Banks as the Fulcrum 12. In Summary; ReferencesThis paper questions the view that leverage should have forewarned us of the global financial crisis of 2007-09, pointing to several gearing indicators that were neither useful portents of the onset of the crisis nor of its ferocity. Instead it shows, first, that the use of ill-suited collateral in the secured funding operations of U.S.-based investment banks was the fatal link between the collapse of structured finance and the global malfunction of funding markets that turbocharged the downdraft; and, second, that this insight (and others) can be decrypted from the Flow of Funds Accounts of the United States.IMF Working Papers; Working Paper ;No. 2012/162Financial crisesGlobal Financial Crisis, 2008-2009Financial leverageBanks and BankingimfInvestments: GeneralimfMacroeconomicsimfMoney and Monetary PolicyimfIndustries: Financial ServicesimfMonetary Policy, Central Banking, and the Supply of Money and Credit: GeneralimfFinancial Institutions and Services: GeneralimfGeneral Financial Markets: General (includes Measurement and Data)imfGeneral Aggregative Models: GeneralimfBanksimfDepository InstitutionsimfMicro Finance InstitutionsimfMortgagesimfMonetary economicsimfInvestment & securitiesimfBankingimfCreditimfFinancial sectorimfSecuritiesimfFlow of fundsimfCommercial banksimfFinancial services industryimfFinancial instrumentsimfBanks and bankingimfUnited StatesimfFinancial crises.Global Financial Crisis, 2008-2009.Financial leverage.Banks and BankingInvestments: GeneralMacroeconomicsMoney and Monetary PolicyIndustries: Financial ServicesMonetary Policy, Central Banking, and the Supply of Money and Credit: GeneralFinancial Institutions and Services: GeneralGeneral Financial Markets: General (includes Measurement and Data)General Aggregative Models: GeneralBanksDepository InstitutionsMicro Finance InstitutionsMortgagesMonetary economicsInvestment & securitiesBankingCreditFinancial sectorSecuritiesFlow of fundsCommercial banksFinancial services industryFinancial instrumentsBanks and banking332Bayoumi Tamim122763Bhatia Ashok1648389DcWaIMFBOOK9910825414203321Leverage? What Leverage? A Deep Dive into the U.S. Flow of Funds in Search of Clues to the Global Crisis3996495UNINA