Financial Reform and Monetary Policy in the Wake of the Global Financial Crisis [REALTOR® University Speaker Series]

Presentation by Dr. Anthony Elson at the REALTOR® University Lecture Series
Summary by Jed Smith, Managing Director, Quantitative Research

The REALTOR® University Brown Bag monthly lecture series features presentations by leading economists, analysts, and social scientists on evolving national and regional issues of interest to REALTORS®. The objective is to highlight a diversity of viewpoints in terms of thought-leadership, recognizing that there will be a variety of possibly conflicting ideas and objectives presented. The talks are for informational purposes and may be at variance with some NAR positions.

Dr. Anthony Elson has held senior positions with the International Monetary Fund, has worked with the World Bank in the evaluation of the Bank’s analytical and advisory service to member countries, and has been a professorial lecturer at the Johns Hopkins School of Advanced International Studies and a visiting lecturer in the program in International Development Policy at the Duke University Center for International Development.

Dr. Elson discussed the financial factors that preceded the global financial crisis: bank finance intimately connected with housing bubbles, “originate to hold” converted to “originate to distribute” with Mortgage Backed Securitization, and a shadow banking system outside the scope of regulation.

He indicated that the subprime crisis in the U.S. became global, through the interconnectedness of financial institutions, reliance on leverage, and lax regulation.

According to Dr. Elson, necessary reforms of the financial system include increased capital requirements, stress tests and intrusive supervision, and Orderly Liquidation Authority.

Dr. Elson’s talk is of significance to REALTORS®, for home sales are highly dependent on financial markets. Both the talk and slides are available at realtor.org. 

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