The Banking Crises and Housing Finance: The Political Economy of Financial Deregulation

This paper explains current problems in the housing and banking industries by reviewing the history of the post‐New Deal U. S. banking system as it relates to housing finance. Current problems in banking and housing are seen as the result of the interaction of long waves of growth and decline in the U.S. economy and structured conflict over financial regulation between large commercial banks and a shifting alliance of other social groups. Contemporary problems of affordability, price volatility, and credit “crunches” flow from increasing financial fragility and economic stagnation. Policies to democratize finance and create new financial institutions are considered. Copyright © 1991, Wiley Blackwell. All rights reserve