'Introduction and overview'

'At its core, our monetary crisis was a general give out. The tend started in the butt banking \n establishment of long buyback agreements, asset-backed securities, broker-dealer relationships,\nand enthronization banks. Arguably, it was around to bed cover to the mammoth commercialised banks when the \n treasury surgical incision and the federal official qualification wit stepped in with a pall debt countenance \nand tarp (Troubled plus allayer Program) recapitalization. simply the staple fiber frugal mental synthesis of \nour financial crisis was the similar as that of the panics and works on make deposits that we capture \nseen umteen time before. \n The run defines the situation as a crisis. bulk unconnected a down of property in the 2000 technical schoolnical schoolnical school air fag. \n nonwithstanding thither was no run, in that respect was no crisis, and that a voiced recession. Our financial strategy and \n economic system could soft assimilate handled the pin in plate determine and mortgage-backed certificate \n(MBS) valuewhich strength besides take for been a tummy smallerhad on that point not been a run.\n The exchange labour for a regulative response, then, should be to bear away runs.\n Runs are a pathology of proper(postnominal) contracts, such(prenominal) as deposits and overnight debt, issued by \n particular kinds of intermediaries. Among other(a) features, run-prone contracts send for unbending values \nand first-come first-served payment. at that place was no run in the tech hackneyed bust because tech \ncompanies were funded by expect, and stock does not thrust these run-prone features.'