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January 20, 2010, Featured Articles

The Visible Hand Behind the Crisis

By Kerry Pechter   Tue, Jan 19, 2010

Viral Acharya and colleagues at NYU's Stern School of Business say the economy was pushed off a cliff by bankers skirting reserve requirements.

Anyone searching for a “visible hand” among the causes of the financial crisis should read the analyses written last year by professors at New York University's Stern School of Business.

The overleveraging that made the collapse of the subprime housing crisis so deadly didn't just happen, they say. It was pushed.


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