Machine generated contents note: 13. Reflections on the Surprises of the Covid Crisis. 2. The Panic of2020 -- 3. Elastic Currency to the Rescue -- 4. The Run on Prime Money Market Funds -- 5. A Second Surprise: The Amazing 2020-21 Market Boom -- 6. Cryptocurrencies: An Assault on Central Banks or Their New Triumph? -- 7. Banks: Not Their Turn This Time -- 8. The Mortgage Market: Built on a Government Financial Triangle -- 9. Municipal Debt in Covid Times -- 10. Pension Funds: Some Dubious Promises -- 11. Student Loans: A Failed Government Lending Program -- 12. Central Banking to the Max -- 13. Reflections on the Surprises of the Covid Crisis.
Summary:
"About every ten years, we are surprised by a financial crisis. In 2020, we were Surprised Again! by the financial panic of the spring triggered by the Covid-19 pandemic. Not one of the 30 official systemic risk studies developed in 2019 had even hinted at this financial crisis as a possibility, or at the frightening economic contraction which resulted from the political responses to control the virus. In response came the unprecedented government fiscal and monetary expansions and bailouts. Later 2020 brought a second big surprise: the appearance of an amazing boom in asset prices, including stocks, houses, and cryptocurrencies. Alex Pollock and Howard Adler lived through this historic instability while serving as senior officials of the U.S. Department of the Treasury. Their book lays out the many elements of the panic and its aftermath, from the massive elastic currency operations which rode to the rescue by financing the bust with unprecedented government debt, to the consequent asset price boom, which included a renewed bubble in house prices financed by government guarantees. It considers key leveraged sectors such as commercial real estate, student loans, pension funds, banks, and the government itself. It reflects on how to understand these events both in retrospect and prospect." Publisher marketing.
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