Review Examines Foreclosure Relief during Great Depression

In the November/December issue of the St. Louis Fed's Review, Economist Dave Wheelock takes an historical look at how states handled foreclosures during the Great Depression. Some states imposed various types of moratoria to help both farmers and homeowners keep their properties. But there was an apparent downside to such relief: Reducing the rate of foreclosures also appears to have reduced the supply of money for subsequent loans, and subsequent borrowers sometimes paid more for credit. The Review covers national and international economic developments—particularly their monetary aspects. (Read more.)

Program Helps Renters Build Assets

Landscaping at St. Anthony Village in the Over-the-Rhine neighborhood of Cincinnati is maintained by residents.

Homeownership has long been considered a way to increase wealth, preferable to renting for that reason. The fall issue of Bridges looks at a program in Cincinnati that allows renters to build equity and, once vested, receive cash payments. To participate, renters must pay their rent on time and help manage and maintain their apartment complex.

Other topics in the newsletter include:

• the high rate of foreclosures in one St. Louis suburb and
• partnerships the University of Memphis has formed with surrounding communities.

U.S. Income Inequality: It’s Not So Bad

Census data show that the income of the rich is growing faster than the income of the poor. But such common measures exaggerate the degree of income inequality. In addition, income inequality is the result of—and not a detriment to—a well-functioning economy. Read more.

Also in the October issue:

• President’s Message: Worry Less about Systemic Risk, More about Inflation
• Community Colleges: Not So Junior Anymore
• Did Credit Scores Predict the Subprime Crisis?
• District Tops U.S. in Growth of Exports to China
• Community Profile: Paris, Tenn.
• Reader Exchange

Full issue.

To see what’s on the minds of our readers, check out the letters to the editor, or send a letter of your own.

Poole Reflects in Bank’s 2007 Annual Report

Former St. Louis Fed President Bill Poole looks back at his eventful 10-year presidency in the Bank's 2007 Annual Report. In a final interview, Poole discusses the Fed's proper role during times of crisis, such as the turbulent economic events that took place during his tenure. He also shares his thoughts on the FOMC's communication policies and on the evolving functions of Reserve banks. Also included are highlights from some of Poole's nearly 150 speeches.