Recent Financial Market Disruptions: Implications for the Economy and American Families

In recent months, problems with subprime mortgages have spilled over to the housing sector and financial markets more generally. These events have created widespread concerns about the hardships facing homeowners and potential risks to the overall economy. They have also raised near-term questions about how to best address economic risk, and provoked longer-term questions about the adequacy of current regulations and consumer protections.

On September 26, 2007, The Hamilton Project at The Brookings Institution convened a roundtable discussion with experts to frame the challenges currently facing housing and the financial markets: where we are, what it means for the U.S. economy, possible next steps for recovery, and ways to minimize future problems.

After introductory remarks by former U.S. Treasury Secretary Robert E. Rubin, the Wall Street Journal's Alan S. Murray moderated a roundtable discussion among the panelists, including former U.S. Treasury Secretary Lawrence H. Summers, Under Secretary of the U.S. Treasury for Domestic Finance Robert K. Steel, Evercore Partners Chairman Roger C. Altman, Eton Park Capital Management CEO Eric Mindich, and Brookings Senior Fellow Douglas W. Elmendorf. After the roundtable discussion, participants took audience questions.