American Bonds: How Credit Markets Shaped a Nation

The American government has used financial credit programs to create economic opportunities since the 1780s, using land sales, home ownership, and credit to manage social divides. These programs have supported the growth of powerful industries, disaster relief, foreign policy, and military efforts, and have been used for amortized mortgages, lending abroad, venture capital investment, and mortgage securitization.

Format: Paperback / softback
Length: 312 pages
Publication date: 10 August 2021
Publisher: Princeton University Press

The American government has a long history of utilizing financial credit programs to create economic opportunities. Federal housing finance policy and mortgage-backed securities have gained significant attention in recent years due to the 2008 financial crisis, but government credit has been an integral part of American life since the nation's founding. From the establishment of a national land credit policy in the 1780s to the postwar foundations of our current housing finance system, American Bonds explores the evolution of securitization and federal credit programs.

Sarah Quinn demonstrates that since the Westward expansion, the U.S. government has used financial markets to manage the complex social divides in America. Politicians and officials across the political spectrum have relied on land sales, home ownership, and credit to provide economic opportunities without appearing to intervene in the market or redistribute wealth directly.

Highly technical systems, securitization, and credit programs have played a crucial role in determining the obligations between Americans. Over time, government officials have embraced credit as a political tool to navigate an increasingly complex and fragmented political system. This affirmation of the government's role as a consequential and creative market participant has been instrumental in shaping the nation's economic landscape.

Credit programs have not been limited to intermittent or marginal use but have supported the growth of powerful industries such as railroads, farms, housing, and finance. They have also been employed for disaster relief, foreign policy, and military efforts. Moreover, credit programs have promoted amortized mortgages, lending abroad, venture capital investment, and mortgage securitization.

American Bonds provides valuable insights into the market-heavy social policies of America. It illustrates how political institutions have become involved in shaping these policies, highlighting the complex interplay between government, markets, and society. By examining the history of securitization and federal credit programs, American Bonds sheds light on the ways in which economic opportunities have been created and the challenges faced by policymakers in managing the nation's economic interests.

Weight: 504g
Dimension: 157 x 234 x 29 (mm)
ISBN-13: 9780691227078