Abstract

While Tipping Points I and II asked about the micro and macroeconomic impacts of the household debt, Tipping Points III examines the economics of the American debt-financed homeownership model and its centrality to American housing policy and the American household's balance sheet. Has this model worked or has it led to financial instability and inequality? Is this model successful or broken and can it be fixed? These are some of the questions our papers try to answer. We wish to thank the Aspen Institute's Financial Security Program for hosting this conference and providing logistical support. All papers are preliminary working versions.

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Executive Summary

Author(s): Ray Boshara, Director, Center for Household Financial Stability, Federal Reserve Bank of St. Louis

Introduction

Mortgaging Household and Global Financial Stability:To What End?

Author(s): William R. Emmons, Ana H. Kent, Lowell R. Ricketts

Paper

Mortgaging Household and Global Financial Stability: To What End?

Author(s): William R. Emmons, Ana H. Kent, Lowell R. Ricketts

Presentation Slides

Session 1 — Homeownership and the Household Balance Sheet

Do Changes in Mortgage Credit Constraints Explain the Housing Boom and Bust?

Author(s): Andra C. Ghent

Paper

Do Changes in Mortgage Credit Constraints Explain the Housing Boom and Bust?

Author(s): Andra C. Ghent

Presentation Slides

Modigliani Meets Minsky: American Household Debt, 1949-2016

Author(s): Moritz Shularick et. al

Paper

Modigliani Meets Minsky: American Household Debt, 1949-2016

Author(s): Moritz Shularick et. al.

Presentation Slides

Session 2 — From the American Dream of Mortgage-Financed Homeownership to Risky Debt Accumulation?

The Distribution of Risk and the Great Recession: Old Problems, New Crises

Author(s): Thomas Herndon

Paper

The Distribution of Risk and the Great Recession: Old Problems, New Crises

Author(s): Thomas Herndon

Presentation

The Case for Homeownership

Author(s): Alana McCargo

Presentation

Author(s)

ADDITIONAL ARTICLES

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Richard Vague on Why Large Rapid Build Ups of Private Debt Cause Financial Crises.

An excerpt from The Next Economic Disaster: Why It's Coming and How to Avoid It.

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America's Private Debt Problem: How Private Debt is Slowing Down Growth and Hurting the Middle Class

A World Economic Roundtable report on private debt and the American middle class.

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A Guide to Essential Readings on Private Debt

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Private Debt Bonanza, Public Debt Legacies: The Euro-Zone’s Experience With Liberalized Private Finance Under Its Ill-Designed Currency Union

How institutional design and austerity is destroying the European economy