by Adam Tooze
QE2 and, 369–70
on TARP, 181
as Treasury Secretary, 200
General Motors (GM), 31, 157–58, 449
Georgia, 4, 117, 125, 135-38
Germany, 16, 93, 167
Agenda, 2010, 95
austerity in, 353–54
bank bailouts in, 159, 188–89, 193, 194–95
debt and, 353–54, 355–56
debt brake, 98, 287–89, 329, 331, 347, 354, 356, 361, 418, 429–30, 512
euro entry of, 93, 94–95
fiscal policy in, 95–98
Greek debt crisis and, 328–30, 332–33, 339, 340, 377–78, 384–85
real estate boom and, 105–6
reunification and, 93, 94, 95, 98
Russia, relations with, 113, 131, 136, 138, 539, 595
as safe haven, 378, 379–80
stimulus package/debt brake deal in, 287–89
unemployment in, 94–95, 287
US mortgage market exposure of German banks, 73–74
United States, relations with, 115–17, 119, 121–22, 136–39, 218, 339, 353–54, 369, 412–14, 434–35, 499-500, 523–24, 594
See also eurozone financial crisis; Merkel, Angela
Gingrich, Newt, 174–75
Ginny Mae, 46, 48. See also government-sponsored enterprises (GSEs)
globalization, 7–8, 26, 457, 571–72, 574–75
global savings glut, 38
global systemically important financial institutions (G-SIFI), 311–13
Globex bank, 224
Golden Dawn, 375, 429, 516
Goldman Sachs, 53, 60, 62, 70, 153, 316, 551
bonuses paid by, 306
collateral calls against AIG of, 152
as commercial bank holding company, 179–80
SEC charges against, 306–7
government bonds
French (OATs), 101
German (Bunds), 287
QE1 and, 285–86
UK (gilts), 285–86
See also US Treasury market
government-sponsored enterprises (GSEs), 46–49
funding advantage of, 46, 47
Greenspan refinancing boom of 2000–2003 and, 55–56
loan standards of, 47–48
originate-to-distribute model of, 48–49
politicization of, 47
underserved communities, lending goals for, 47
Graham, Lindsey, 293
Gramm, Phil, 109
Great Britain. See United Kingdom
“great moderation”, 10, 11, 44
Greece, 15
austerity in, 330–31, 340, 376–77, 384–85, 409
cross-border financial flows in, 106–7
debt crisis in, 14, 322, 323–45, 357–59, 376–78, 381–89, 408–10, 422–29
debt restructuring and, 384–85, 388–89, 423–28
deficits in, 101, 324, 338
demonstrations in, 340, 375, 409
elections of 2012, 428
Eurogroup-Syriza debt restructuring confrontation, 517–35
extend-and-pretend in, 325, 328, 331, 336, 358–59, 376, 382–83, 401, 425, 529, 532
Fitch downgrade of debt of, 339
Papandreou replaced as prime minister, 409–10
real estate boom in, 107
rescue fund for, 342–44
social crisis in, 515–16
#Thisisacoup, 533
troika’s rescue plan for, 336–37, 339–40
unemployment in, 358–59, 374, 408, 428, 515
vote against troika proposal, 530
Greenspan, Alan, 29, 32, 37, 293, 574, 575
Gref, Herman, 503
Gross, Bill, 40, 349, 379, 481
“Growth in a Time of Debt” (Reinhart & Rogoff), 347
Habermas, Jürgen, 116, 122, 534
Hamilton Project, 25–27, 29, 36, 42, 182, 281, 451, 456, 458
Hammond, Philip, 560, 592
Hartz IV, 95
HBOS, 154, 171, 189–90
Hellwig, Martin, 313
Hensarling, Jeb, 182, 588
Hessel, Stéphane, 374
Hitachi, 158
Hollande, François, 429, 434, 518, 532
Honohan, Patrick, 363
housing market, 7
as collateral for banking, 43
bubble in American, 42–43
bubble in European, 105–6
collapse in, 143–44, 156–57
consumption, impact of rising prices on, 43
savings and loan crisis, 44–45
as single largest form of wealth, 42–43
speculation in, 65–66
See also mortgages/mortgage system
HSBC, 75, 143–44, 145, 191, 541, 542
Hu Jintao, 244
Hungary, 121, 123, 126, 127, 227, 229, 230–32, 491–92
Hurricane Harvey, 582
Hypo Real Estate, 84, 154, 185, 188, 198, 286, 358, 378
Hyundai Motors, 256–57, 260
Iceland, 167, 232
Iglesias, Pablo, 376
IKB, 144
IMF. See International Monetary Fund (IMF)
India, 477, 483
Indonesia, 477, 483
Asian financial crisis and, 7, 32, 255–56, 261
capital controls adopted by, 475
financial crisis of 2008 and, 258–59
stimulus program, 258–59
Industrial and Commercial Bank of China, 249
inequality, 455–63
inflation, 11, 44–45
ING, 124
interest rates
ECB rate increase 2011, 378–79
Fed’s rate hikes, 2015–2018, 590
Greenspan cuts, after dot-com bust and 9/11, 37–38, 55–56, 69–70
inverted yield curve, 2006, 70
taper tantrum of 2013, 472–82
Volcker’s raising of, 43–44
intergovernmentalism, 113, 114–15
International Monetary Fund (IMF), 17–18, 89, 127
acceptance of exchange controls, 475
Asian financial crisis, 261
banking crisis, 206, 401-2
Eastern European crisis, 127, 230–32, 235, 237, 491–93
eurozone crisis, 2010–12, Greece and, 323, 325, 332–34, 336, 340, 343, 344–45, 357, 377, 382–85, 388–89, 405, 413, 422, 424
eurozone crisis, 2015, Greece and 516–517, 520, 523, 527, 528–30
eurozone crisis Ireland and, 360, 364–65, 368, 398
eurozone crisis Italy and, 410–11
fiscal multiplier underestimated by, 423, 429–30
global imbalances, 40, 370
G20 agreement for expanded funding of, 270, 272
quota reallocation, 270, 272, 469, 479, 488
Ukraine and 2013–15, 493–94, 495–98, 500–1, 507–8
warns against Brexit, 550
investment banks, 51–54
Brexit and, 550–51
compensation at, 65
crises faced by, in 1990s and early 2000s, 53–54
funding of, 52–53
growth from 1970s, 51–53
products engineered by, 52
profits made by, 64–65
See also specific investment banks
Iraq War, 3, 28, 115–16
Ireland, 83–84, 167, 337, 338
bank bailouts in, 185–86, 193
debt crisis in, 322, 323, 359–66
ECB forces austerity plan on, 362–65
household wealth lost in, 156
IMF and, 360, 364–65, 368, 398
real estate boom in, 105, 106, 107, 109
; Irish Times, 363
Irwin, Neil, 215–17, 350
Italy, 322, 385
austerity program adopted in, 387
Cannes G20 and, 410–12
debt of, 386–87, 389
ECB’s bond buying program, 2011, 398–99
euro entry of, 94
eurozone crisis resolution, 2012 and, 431–37
Japan, 30, 158–59
Jay Z, 40
Johnson, Boris, 548, 552
J.P. Morgan, 52, 60, 70, 88, 154, 170, 197, 199, 316, 551
Bear Stearns bailout and, 171
Washington Mutual purchase by, 180
Juncker, Jean-Claude, 22, 187, 381–82, 404–5, 435, 527
Kagan, Robert, 116
Kažimir, Peter, 527
Keynes, John Maynard, 8-9
Khodorkovsky, Mikhail B., 129
King, Mervyn, 89, 146, 192, 272, 349, 438, 541
Kirchner, Cristina Fernández de, 2, 269
Kissinger, Henry, 30–31
KKE, 428–29
Koch-Weser, Caio, 261
Kohl, Helmut, 44, 93, 119, 386
Komorowski, Bronislaw, 489
Krämer, Jörg, 415
Kravis, Henry, 183
Krugman, Paul, 41, 161, 191, 350, 372, 373, 452, 459–60, 523
Kudlow, Larry, 68
Kudrin, Alexei, 130, 131–32
Kuwait, 160
Kyrgyzstan, 506
Labour Party, 190, 191–92, 349, 553
Lafazanis, Panagiotis, 533
Lagarde, Christine, 186–87, 266, 383, 401–2, 405, 479, 550
Larosière committee, 314–15
Latvia, 121, 126, 127–28, 227, 232, 234–36, 491
Law and Justice, 538
Left Bloc, 536
Lehman Brothers, 1, 9, 55, 59–60, 62, 63–64, 88, 207
collapse of, 149, 176–77
Fed/Treasury unwillingness to help, 176
takeover rejected by other banks, 175–76
Lenihan, Brian, 365
Le Pen, Marine, 513, 561, 562
Lerner, Abba, 612
leverage
Basel III provisions, 314
of Fannie Mae and Freddie Mac, 172
in SIV-ABCP model, 61
of US versus European banks, pre-crisis, 87–88
repo as a mechanism for building, 61–62
Lew, Jack, 523–24
Lewis, Ken, 175, 199–200
Libya, 373, 488
Lighthizer, Robert, 593
Lippmann, Greg, 70
Lipsky, John, 344, 345, 383–84
liquidity crisis, 202–19
Bank of England and, 203
criteria for receiving Fed’s swap line, 220–21
dollar-based financial system, impact on, 218–19
dollar funding shortage of European banks, 8, 154–55, 203–6
ECB and, 144–45, 203
evaporation of, in US securitization market, 144
Fed liquidity mechanisms, 9–10, 11–12, 202–3, 206–21
Fed swap lines provided to central banks, 9–10, 11–12, 210–15, 220–21
liquidity swap lines
ECB swap lines with Sweden and Denmark, 229–30
Fed’s swap lines provided to central banks, 9–10, 11–12, 210–15, 220–21
legitimacy of, 483–84
temporary central bank bilateral swaps converted to standing arrangements, 482–83
Lisbon Treaty, 114–15, 188, 329–30
Lithuania, 121, 126, 229, 234, 491
living wills
Basel III requirements, 311–12
Dodd-Frank Act requirements, 303–4
Lloyds Bank (Lloyds-HBOS), 171, 189–90, 191, 193, 198, 541
London, City of. See City of London
Long-Term Capital Management, 53–54
Long-Term Refinancing Operation, 286
long-term refinancing operation (LTRO), 286, 334, 420–21, 442
LTRO. See long-term refinancing operation (LTRO)
Lukoil, 223, 505
M15 movement, 374
McCain, John, 3, 175, 182, 183, 498, 499–500
McConnell, Mitch, 392
McFadden, Pat, 549
McNulty, Mike, 181–82
macrofinancial economics, 9, 12–13
Macron, Emmanuel, 531, 562, 594, 595
macroprudential supervision, 13, 309
Magyar Hírlap, 230–31
Malaysia
Asian financial crisis and, 32, 255–56
financial crisis of 2008 and, 257–58, 259–60
stimulus program, 259–60
Malaysian Airlines flight MH17, 502
market-based model of banking, 76
Martin, Paul, 261, 262
Mason, Paul, 182
Master Liquidity Enhancement Conduit, 170
May, Theresa, 556, 557–60
Mayer, Thomas, 332
MBS. See mortgage-backed securities (MBS)
Medvedev, Dmitry, 136, 137, 221–22, 223–24, 226–27, 488
Membership Action Plan (MAP), 135–37
mergers, 461
Merkel, Angela, 96, 113–14, 138, 434–35
austerity and, 353, 354
bank bailouts and, 185, 187–88, 189
Deauville announcement and, 361–62
elections of 2012 and, 430
European Financial Stability Facility (EFSF) and, 400–401
G20 Cannes meeting and, 409–10, 413–14
G20 London summit and, 266, 268–69, 271–72
G20 Los Cabos meeting and, 434–45
Greek debt crisis and, 329, 332–33, 336, 339, 340, 377, 384
Growth Pact and, 435–37
on market-confirming codetermination, 396–97
Merkel-Sarkozy ECB plan, 387–89
Papandreou replaced as prime minister and, 409–10
post-crisis authority and reelection of, 511–12
stimulus package/debt brake deal and, 287, 288, 289
Syriza-Eurogroup debt restructuring confrontation and, 521, 522, 525, 526, 528, 531–32, 534
third rescue plan for Greece and, 407–8
united Europe fighting for it’s own future , 594, 595, 610–11
Merrill Lynch, 53, 62, 88, 149–50
Bank of America purchase of, 175–76
bonuses paid by, 292
liquidity provided to, 207, 209, 217
Messina, Jim, 549
Mexico, 7, 32, 158, 232, 594
MF Global, 406–7
minorities/minority communities
household wealth lost by, 157
in Detroit, 450–51, 456–57
lending goals for GSEs and, 47
unemployment, 2008-2009, 160
Minsky, Hyman, 569
Mitterand, François, 44, 93, 119
MMF. See money market mutual funds (MMF)
Mnuchin, Steve, 579, 582, 592
Mody, Ashoka, 555, 556
Monetary History of the United States (Friedman and Schwartz), 38–39
money market mutual funds (MMF), 52–53, 152–53
Mongolia, 232
Monti, Mario, 94, 411, 432, 433, 436, 437
Moody’s Investors Service, 49, 64, 69, 433, 536
Moore, Michael, 182
Morgan Grenfell Group, 83
Morgan Stanley, 53, 62, 316, 551
as commercial bank holding company, 179–80
liquidity provided to, 209, 217
mortgage-backed securities (MBS), 48–49
2007–8 collapse in market for, 144, 148
AIG losses on,
151–52, 178
amount of subprime mortgage MBS issued by 2007, 66
Fed purchases of, 285
foreign investment in, 73
GSE holding of, 172, 174
ratings received by, 49–50, 57–58
MortgageIT Holdings, 75
mortgages/mortgage system, 44–51
adjustable rate mortgages, 70
in bubble states, 65–66
conforming loans, 46–47
emerging market demand for safe reserve assets and, 58–59
foreclosures, 156, 280, 281, 306, 321, 366
foreign investment in, 73–75
government-sponsored enterprises (GSEs), role of (See government-sponsored enterprises (GSEs))
Greenspan’s interest rate cuts, refinancing boom spurred by, 55–56, 69–70
private mortgage industry, 55–56
rating agencies and, 49–50
savings and loan crisis and, 44–45
securitization, 48–51, 55–56
underserved communities, lending goals for, 47
Volcker’s interest rate policy, impact of, 44–45
See also subprime mortgages
multipolarity, 4, 133, 134, 139–40, 239, 255, 261, 509
Mulvaney, Mick, 582
Munchau, Wolfgang, 527
NAFTA. See North American Free Trade Agreement (NAFTA)
Najib Razak, 259
Napolitano, Giorgio, 411
Nashi, 132
National Bank of Switzerland, 211
National Economic Council (NEC), 190
National Front (FN), 513, 538
NATO
Article 5, Trump hesitation over, 594
Georgia and Ukraine MAP applications, 135–37
post-cold war expansion of, 121–26
Navarro, Peter, 592
NEC. See National Economic Council (NEC)
neoliberalism, 10, 396–97
Netherlands, 167, 193, 421
New Century Financial, 144
New Deal, 279, 280, 372
New Democracy, 323–24, 425, 429, 435, 516
9/11 terrorist attacks, 28, 115–16
Nissan, 558
Nixon, Richard, 11, 30–31, 44, 92
Norilsk, 223
North American Free Trade Agreement (NAFTA), 123, 158, 457, 571, 591, 592–93
Northern Rock, 145–46, 541
Noyer, Christian, 406
NSA, 484, 499
Nuland, Victoria, 497
Obama, Barack, 18, 35, 265, 267, 446, 565
bank CEOs meet with, 296
on bank nationalization, 293–94
Brexit and, 551
Hamilton Project appearance of, 25, 26–27
on decay of American dream, 456
economic team of, 200–201
election of, 200, 277
Eurogroup-Syriza debt restructuring confrontation and, 523–24