Losses in private mortgage backed securities were at the epicenter of the financial crisis from 2007-2009. This paper by Thomas Herndon examines two features of mortgage fraud contributing to the financial crisis. It first accounts for total losses from foreclosure due to no/low documentation "Liar's Loans." It then estimates what portion of these losses can be considered excessive. Herndon finds that losses caused by fraud in Liar's Loans are substantial, prolonged, and concentrated in economically fragile neighborhoods. Specifically, Liar's Loans account for $345 billion of the $500 billion of total losses, $125 billion of which can be considered excessive.

Puerto Rico is experiencing a severe economic, social, and debt crisis. But the predominant idea guiding discussions for resolving the crisis is an austerity agenda that will only worsen conditions. This paper by Amanda Page-Hoongrajok, Shouvik Chakraborty and Robert Pollin of PERI develops a “green growth” program for Puerto Rico as an alternative to austerity. This program is capable of delivering much lower energy costs, expanding job opportunities, eliminating dependence on fossil fuel imports, and creating openings for small-scale business ventures. But major debt write-downs will be necessary to enable the green growth program to move forward at a significant scale.

What is "family income" and how does its definition and measurement affect estimates of income inequality in the United States? Nancy Folbre addresses these questions in a brief research note published by Washington Center for Equitable Growth. In the essay, she explains how the value of non-market work and intra-family transfers (typically omitted from consideration) lead to significant differences in the living standards of families with exactly the same market income.