Chapter Fifteen:

The Financial Crisis and the

Great Recession

Prelude to a Crisis

Figure 15.1: Historical Housing Prices

Source: Shiller dataset. www.econ.yale.edu/~shiller/data.htm

Figure 15.2: Housing Bubble and Credit Access

Sources: Federal Reserve (www.newyorkfed.org/markets/statistics/dlyrates/fedrate.html/ and www.federalreserve.gov/releases/h15/data.html); Shiller dataset, www.econ.yale.edu/~shiller/data/ie_data.xls

Underlying Causes of the Financial Crisis

Figure 15.3: Increasing Bank Size

Source: Federal Deposit Insurance Corporation (www2.fdic.gov/qbp/); www.fdic.gov/bank/statistical/stats/2012dec/industry.html