The Revolution In Housing Finance
At dinner tables, around water coolers, and in political debates around the country, many are confused about what capital markets do and if they matter to Main Street. Many in Washington, D.C. question the value of capital markets. Third Way's Capital Markets 101 sessions were launched to help answer many of the questions surrounding what capital markets do in order to have a more nuanced, thoughtful policy debate, and help policymakers understand the value capital markets provide to all Americans.
Following our previous sessions with Mark Zandi, Sheila Bair and Paul Volcker – on May 11th, Third Way hosted Bethany McLean, contributing editor to Vanity Fair and author of All the Devils are Here, which has been called a “must read” byNPR Planet Money. Ms. McLean also authored the definitive book on the Enron scandal, Enron: The Smartest Guys in the Room.
Ms. McLean told the story of the revolution in housing finance and how it contributed to the financial crisis of 2008. Using the fascinating events and characters from her book All the Devils are Here, Ms. McLean broke down the complex topic of housing finance. In addition, she discussed the lessons of the financial crisis, the implications for housing policy, and the regulation of the capital markets going forward.