by Adam Tooze
13. M. Z. Abidin and R. Rasiah, “The Global Financial Crisis and the Malaysian Economy: Impact and Responses” (Kuala Lumpur: UNDP Malaysia, 2009).
14. K. Sangsubhan and M. C. Basri, “Global Financial Crisis and ASEAN: Fiscal Policy Response in the Case of Thailand and Indonesia,” Asian Economic Policy Review 7, no. 2 (2012), 248–269.
15. M. C. Basri and S. Rahardja, “Mild Crisis, Half Hearted Fiscal Stimulus: Indonesia During the GFC,” Assessment on the Impact of Stimulus, Fiscal Transparency and Fiscal Risk (ERIA Research Project Report 1,2010), 169–211.
16. E. Chew, “Malaysia Stimulus Tops $16 Billion,” Wall Street Journal, March 11, 2009.
17. A. Maierbrugger, “1MDB Scandal: Next Suspect Goldman Sachs Banker,” February 15, 2016, http://investvine.com/1mdb-scandal-next-suspect-goldman-sachs-banker/.
18. “Chronology of Korean Responses to the Financial Crisis,” New York Times, October 19, 2008.
19. N. Baba and I. Shim, “Policy Responses to Dislocations in the FX Swap Market: The Experience of Korea,” BIS Quarterly Review, June 2010.
20. T. Kalinowski, “The Politics of Market Reforms: Korea’s Path from Chaebol Republic to Market Democracy and Back,” Contemporary Politics 15, no. 3 (2009), 287–304.
21. T. Kalinowski, “Crisis Management and the Diversity of Capitalism: Fiscal Stimulus Packages and the East Asian (Neo-)Developmental State,” Economy and Society 44, no. 2 (2015), 244–270.
22. FOMC meeting, October 28–29, 2008.
23. R. H. Wade, “Emerging World Order? From Multipolarity to Multilateralism in the G20, the World Bank, and the IMF,” Politics & Society 39, no. 3 (2011), 347–378.
24. J. Kirton, G20 Governance for a Globalized World (Farnham, UK: Ashgate, 2013).
25. “Norway Takes Aim at G-20,” Spiegel Online, June 22, 2010.
26. Culminating in the UN Conference at the Highest Level on the World Financial and Economic Crisis and Its Impact on Development, June 2009, http://www.un.org/ga/president/63/interactive/uneconference.shtml.
27. Darling, Back from the Brink, 193.
28. Seldon, Brown at 10, 45.
29. Washington press conference with Gordon Brown and Alistair Darling, Saturday, November 15, 2008, http://webarchive.nationalarchives.gov.uk/20090330160949 [inactive]; http://www.number10.gov.uk/Page17514 [inactive].
30. Seldon, Brown at 10, Kindle locations 7411–7417.
31. J. Beale, “Lofty Ambitions for Obama’s Visit,” BBC News, March 31, 2009.
32. Seldon, Brown at 10, Kindle locations 7660–7663.
33. For a discussion, see E. Helleiner and J. Kirschner, eds., The Great Wall of Money (Ithaca, NY: Cornell University Press, 2014). For the original, see “Zhou Xiaochuan: Reform the International Monetary System,” March 23, 2009, http://www.pbc.gov.cn/english/130724/2842945/index.html.
34. J. Zhongxia, “The Chinese Delegation at the 1944 Bretton Woods Conference: Reflections for 2015,” https://www.omfif.org/media/1067515/chinese-reflections-on-bretton-woods-by-jin-zhongxia.pdf.
35. M. P. Dooley, D. Folkerts-Landau and P. Garber, “The Revived Bretton Woods System,” International Journal of Finance and Economics 9, no. 4 (October 2004), 307–313.
36. On the China rebalancing effort, see B. Setser, “The Balance of Financial Terror, Circa August 9, 2007,” https://www.cfr.org/blog/balance-financial-terror-circa-august-9-2007.
37. UN, “Report of the Commission of Experts of the President of the United Nations General Assembly on Reforms of the International Monetary and Financial System,” New York, September 2009.
38. G. C. Chang, “China’s Assault on the Dollar,” March 26, 2009, https://www.forbes.com/2009/03/26/zhou-xiaochuan-geithner-renminbi-currency-opinions-columnists-dollar.html.
39. J. Kollewe, “Global Currency Flies with Push from Russia and Slip from Timothy Geithner,” Guardian, March 26, 2009.
40. A. Lane, “In Defending US Currency, Bachmann Distorts Geithner’s Comments About Dollar,” April 1, 2009, http://www.politifact.com/truth-o-meter/statements/2009/apr/01/michele-bachmann/defending-dollar-bachmann-distorts-geithners-comme/.
41. E. S. Prasad, The Dollar Trap: How the US Dollar Tightened Its Grip on Global Finance (Princeton, NJ: Princeton University Press, 2014).
42. H. Cooper, “On the World Stage, Obama Issues an Overture,” New York Times, April 2, 2009.
43. Joint press conference with Angela Merkel and Nicolas Sarkozy, April 1, 2009, https://ca.ambafrance.org/Joint-press-conference-with-Angela.
44. For the following, A. Rawnsley, The End of the Party (London: Penguin, 2010).
45. P. Blustein, Laid Low: Inside the Crisis That Overwhelmed Europe and the IMF (Waterloo, Ontario: CIGI, 2016), 75.
46. N. Woods, “Global Governance After the Financial Crisis: A New Multilateralism or the Last Gasp of the Great Powers?,” Global Policy 1, no. 1 (2010), 51–63.
47. For the following, Rawnsley, The End of the Party, ibook location 4218–4351.
48. “Transcript: Obama’s G20 Press Conference,” April 2, 2009, https://www.cbsnews.com/news/transcript-obamas-g20-press-conference/.
49. A. Sparrow, K. Baldwin and H. Stewart, “Today’s G20 Deal Will Solve Financial Crisis, Claims Gordon Brown,” Guardian, April 2, 2009.
50. M. Rosie and H. Gorringe, “What a Difference a Death Makes: Protest, Policing and the Press at the G20,” Sociological Research Online 14, no. 5 (2009), 4.
51. “King Warns Against More Spending,” BBC News, March 24, 2009.
52. P. Aldrick, “Failed Gilt Auction Stokes Fears over UK Economy,” Telegraph, March 25, 2009.
53. M. Gove, “Coyote Ugly: G20 Finally Pushes Prudence into the Abyss,” Scotsman, March 28, 2009.
54. P. Wintour and N. Watt, “Gordon Brown: A Statesman Abroad, Under Fire Back Home,” Guardian, March 25, 2009.
55. “London Summit—Leaders’ Statement,” April 2, 2009, https://www.imf.org/external/np/sec/pr/2009/pdf/g20_040209.pdf.
56. N.-L. Sum, “A Cultural Political Economy of Crisis Recovery.”
57. Germany’s modest discretionary stimulus in early 2009 would later rise due to tax cuts following the elections of September 2009.
CHAPTER 12: STIMULUS
1. S. Erlanger and S. Castle, “European Leader Assails American Stimulus Plan,” New York Times, March 25, 2009.
2. A. White, “EU Presidency: US Stimulus Is ‘The Road to Hell,’” San Diego Tribune, March 25, 2009.
3. Rawnsley, End of the Party, ibook location 4309.
4. N. Sheiber, The Escape Artists: How Obama’s Team Fumbled the Recovery (New York: Simon & Schuster, 2012), 96.
5. R. Lizza, “The Obama Memos,” New Yorker, January 30, 2012, http://www.newyorker.com/magazine/2012/01/30/the-obama-memos.
6. M. Grunwald, The New New Deal: The Hidden Story of Change in the Obama Era (New York: Simon & Schuster, 2012).
7. D. Loewe, “Obama’s Blues Agenda,” Guardian, February 13, 2009.
8. J. Green, “The Elusive Green Economy,” Atlantic, July/August 2009, https://www.theatlantic.com/magazine/archive/2009/07/the-elusive-green-economy/307554/.
9. M. Grabell, Money Well Spent? The Truth Behind the Trillion-Dollar Stimulus, the Biggest Economic Recovery Plan in History (New York: PublicAffairs, 2012).
10. B. Dupor, “The Recovery Act of 2009 vs. FDR’s New Deal: Which Was Bigger?,” https://www.stlouisfed.org/publications/regional-economist/first_quarter_2017/the-recovery-act-of-2009-vs-fdrs-new-deal-which-was-bigger.
11. F. Reichling, “Estimated Impact of the American Recovery and Reinvestment Act on Employment and Economic Output from October 2011 Through December 2011,” Congressional Budget Office, Washington, DC, 2012. This broadly concurs with T. G. Conley and B. Dupor, “The American Recovery and Reinvestment Act: Solely a Government Jobs Program?,” Journal of Monetary Economics 60.5 (2013),
535–549.
12. Council of Economic Advisers, “The Economic Impact of the American Recovery and Reinvestment Act Five Years Later” (final report to Congress, February 2014).
13. P. Krugman, End This Depression Now; and Eichengreen, Hall of Mirrors, 297–301.
14. C. Romer and J. Bernstein, “The Job Impact of the American Recovery and Reinvestment Plan,” January 9, 2009, https://www.economy.com/mark-zandi/documents/The_Job_Impact_of_the_American_Recovery_and_Reinvestment_Plan.pdf.
15. N. Barofksy, Bailout: An Inside Account of How Washington Abandoned Main Street While Rescuing Wall Street (New York: Free Press, 2012).
16. The figure of 9.3 million homes lost is an estimate by the National Association of Realtors cited in L. Kusisto, “Many Who Lost Homes to Foreclosure in Last Decade Won’t Return,” Wall Street Journal, April 20, 2015. See also “The End Is in Sight for the US Foreclosure Crisis,” December 3, 2016, https://www.stlouisfed.org/publications/housing-market-perspectives/issue-3-dec-2016/the-end-is-in-sight-for-the-us-foreclosure-crisis.
17. “Lawrence Summers on ‘House of Debt,’” Financial Times, June 6, 2014.
18. R. Suskind, Confidence Men.
19. R. E. Rubin, P. R. Orszag and A. Sinai, “Sustained Budget Deficits: The Risk of Financial and Fiscal Disarray,” AEA-NAEFA Joint Session, Allied Social Science Associations Annual Meetings, 2004.
20. P. Mauro, M. A. Horton and M. S. Kumar, “The State of Public Finances: A Cross-Country Fiscal Monitor,” IMF, 2009.
21. “Budget of the US Government Fiscal Year 2011,” https://www.gpo.gov/fdsys/pkg/BUDGET-2011-BUD/pdf/BUDGET-2011-BUD.pdf.
22. IMF, Fiscal Monitor, Washington, DC, May 2010.
23. Editorial, “The Bond Vigilantes,” Wall Street Journal, May 29, 2009.
24. Scheiber, Escape Artists, 151; and Suskind, Confidence Men, 516.
25. Scheiber, Escape Artists, 150.
26. A. P. Lerner, “Functional Finance and the Federal Debt,” Social Research (1943), 38–51.
27. D. Gabor and C. Ban, “Banking on Bonds: The New Links Between States and Markets,” Journal of Common Market Studies 54, no. 3 (2016), 617–635.
28. Bastasin, Saving Europe, 110–111.
29. D. Gabor, “The ECB and the Eurozone Debt Crisis” (ND), https://www.academia.edu/868218/The_ECB_and_the_European_Debt_Crisis, and D. Gabor, “The Power of Collateral: The ECB and Bank Funding Strategies in Crisis,” May 18, 2012, available at SSRN: https://ssrn.com/abstract=2062315 or http://dx.doi.org/10.2139/ssrn.2062315. To supplement the LTRO operations the ECB also operated a smaller scheme to support the covered bond market.
30. IIF, “Interim Report on the Cumulative Impact on the Global Economy of Proposed Changes in the Banking Regulatory Framework,” June 2010, 26.
31. M. Dettmer, D. Kurbjuweit, R. Nelles, R. Neukirch und C. Reiermann, “Diebische Freude,” Spiegel, January 12, 2009.
32. OECD, Public Debt Markets: Trends and Recent Structural Trends (Paris: OECD, 2002).
33. “Konjunkturpaket II,” Spiegel, January 27, 2009.
34. “Konjunkturpaket,” Spiegel, January 6, 2009.
35. C. Reiermann, “Goldener Zuegel,” Spiegel, February 9, 2009.
36. F. Gathmann, “Einigung zur Schuldenbremse,” Spiegel, February 6, 2009; and “Finanzhilfen für ärmere Länder,” Spiegel, February 13, 2009.
37. “Foederalismusreform,” Spiegel, March 27, 2009.
38. “Fuehrende Oekonomen verteufeln die Schuldenbremse,” Handelsblatt, February 13, 2009; and S. Dullien, “Kommentar,” Spiegel, February 9, 2009.
39. “Schlacht um die Schuldenbremse,” Manager Magazin, January 16, 2009.
40. D. Hawranek, et al., “Gipfel am Abgrund,” Spiegel, March 30, 2009.
41. Kuttner, Presidency in Peril, 78–79.
42. Suskind, Confidence Men, 656.
43. Scheiber, Escape Artists, 150.
44. IMF, Fiscal Monitor, Washington, DC, November 2010.
CHAPTER 13: FIXING FINANCE
1. OECD, Economic Outlook No. 85 (June 2009).
2. “Acquisition of Merrill Lynch by Bank of America,” June 5, 2009, https://www.federalreserve.gov/newsevents/testimony/bernanke20090625a.htm.
3. “Citigroup Stock Sinks to an All-Time Low of 97 Cents,” May 4, 2009, http://www.huffingtonpost.com/2009/03/05/citigroup-stock-sinks-to_n_172167.html.
4. P. Wintour and J. Treanor, “RBS Bonuses to Reach £775m Despite Treasury Tough Talk,” Guardian, February 17, 2009,
5. B. White, “What Red Ink? Wall Street Paid Hefty Bonuses,” New York Times, January 28, 2009.
6. G. Farrell and J. Macintosh, “Merrill Delivered Bonuses Before BofA Deal,” Financial Times, January 21, 2009.
7. “Obama’s Statement on AIG,” New York Times, March 16, 2009.
8. K. Guha and E. Luce, “Greenspan Backs Bank Nationalization,” Financial Times, February 17, 2009.
9. “Nationalization: Is It the Only Answer to Save Banks?,” February 15, 2009, http://abcnews.go.com/WN/Economy/story?id=6885587.
10. “Obama: Swedish Model Would Be Impossible Here,” February 11, 2009, http://www.businessinsider.com/obama-swedish-model-would-be-impossible-here-2009-2.
11. J. Cassidy, “No Credit Timothy Geithner’s Financial Plan Is Working—And Making Him Very Unpopular,” New Yorker, March 15, 2010, http://www.newyorker.com/magazine/2010/03/15/no-credit-2#ixzz0haHEOfV7.
12. Suskind, Confidence Men, 397–464.
13. Bair, Bull by the Horns, Kindle location 3032.
14. S. Johnson and J. Kwak, 13 Bankers: The Wall Street Takeover and the Next Financial Meltdown (New York: Pantheon Books, 2010).
15. Suskind, Confidence Men, 455–460, 695. Geithner issued a public denial: “Press Briefing by Press Secretary Jay Carney, Treasury Secretary Tim Geithner, and OMB Director Jack Lew,” September 19, 2011, https://obamawhitehouse.archives.gov/the-press-office/2011/09/19/press-briefing-press-secretary-jay-carney-treasury-secretary-tim-geithne.
16. E. Javers, “Inside Obama’s Bank CEOs Meeting,” Politico, March 4, 2009, http://www.politico.com/story/2009/04/inside-obamas-bank-ceos-meeting-020871.
17. Geithner, Stress Test, 376.
18. DealBook, “Geithner Haunted by a Goldman Past He Never Had,” New York Times, August 19, 2010.
19. Geithner’s calendar: https://www.nytimes.com/interactive/projects/documents/geithner-schedule-new-york-fed.
20. A. Clark, “Diary Shows Geithner-Darling Contact During Crisis,” Guardian, October 11, 2009.
21. Scheiber, Escape Artists, 38.
22. J. Anderson, “Calm Before and During a Storm,” New York Times, February 9, 2007.
23. Suskind, Confidence Men, 455.
24. Federal Reserve, “The Supervisory Capital Assessment Program: Design and Implementation,” April 24, 2009, https://www.federalreserve.gov/newsevents/press/bcreg/bcreg20090424a1.pdf. As Kuttner, Presidency in Peril, 151, points out, the stress test team was grossly underpowered given the complexity of the businesses they were examining.
25. Geithner, Stress Test, 345–350.
26. D. Enrich, D. Fitzpatrick and M. Eckblad, “Banks Won Concessions on Tests,” Wall Street Journal, May 9, 2009.
27. Bair, Bull by the Horns, Kindle location 2843; and F. Guerrera and J. Eaglesham, “Citi Under Fire over Deferred Tax Assets,” Financial Times, September 6, 2010.
28. Scheiber, Escape Artists, 128.
29. On Citi, Kuttner, Presidency in Peril, 129.
30. SIGTARP, “Exiting TARP: Repayments by the Largest Financial Institutions,” September 29, 2011.
31. Bair, Bull by the Horns, Kindle location 3686.
32. D. Baker and T. McArthur, “The Value of the ‘Too Big to Fail’ Big Bank Subsidy,” CEPR, 2009.
33. An outstanding road map to the passage of Dodd-
Frank can be found in A. S. Blinder, When the Music Stopped: The Financial Crisis, the Response and the Work Ahead (New York: Penguin, 2013), 263–366. For contending political accounts, see Geithner, Stress Test, 388–438; Bernanke, Courage to Act, 435–466; and S. Bair, Bull by the Horns, Kindle location 3223–4339.
34. “Dodd-Frank Wall Street Reform and Consumer Protection Act,” Public Law 111–203, July 21, 2010, https://www.gpo.gov/fdsys/pkg/PLAW-111publ203/pdf/PLAW-111publ203.pdf.
35. US Treasury, “Financial Regulatory Reform: A New Foundation,” Washington, DC, 2009.
36. Geithner, Stress Test, 399.
37. Pew Research Center, “Americans’ Views of Fed Depend on Their Politics,” December 16, 2015, http://www.pewresearch.org/fact-tank/2015/12/16/americans-views-of-fed-depend-on-their-politics/.
38. “Ben Bernanke,” Time, December 16, 2009.
39. Bernanke, Courage to Act, 430–434.
40. S. A. Binder, “Ben Bernanke’s Second Term as Chairman of the Federal Reserve,” January 30, 2010, https://www.brookings.edu/opinions/ben-bernankes-second-term-as-chairman-of-the-federal-reserve/; and S. Chan, “Senate, Weakly, Backs New Term for Bernanke,” New York Times, January 28, 2010.
41. Bernanke, Courage to Act, 445–447.
42. Geithner, Stress Test, 404.
43. Ibid., 432.
44. Ibid., 398.
45. “The United States Residential Foreclosure Crisis: Ten Years Later,” March 2017, http://www.corelogic.com/research/foreclosure-report/national-foreclosure-report-10-year.pdf.
46. “Life After Lehman,” September 13, 2013, http://www.institutionalinvestor.com/Article/3254651/Life-After-Lehman-A-Look-at-How-6-Prominent-Players-Have-Fared.html#.Wavm3ZOGN0s.
47. S. Grocer, “Banks Set Record for Pay,” Wall Street Journal, January 14, 2010.
48. T. M. Tse, “Goldman Sachs Earns $13 bn in 2009,” Washington Post, January 22, 2010.
49. Gasparino, Bought and Paid For, 6.
50. Bair, Bull by the Horns, Kindle location 3924–3971.
51. D. Polk, “Dodd-Frank Progress Report.” July 2013, https://www.davispolk.com/files/Jul2013_Dodd.Frank_.Progress.Report.pdf.
52. Blinder, After the Music Stopped, 314–319.