The past few weeks have seen a dramatic escalation in financial stress, culminating in the spectacular failures of some of Wall Street’s most venerable firms, brought down by securities tied to subprime mortgages. U.S. Treasury Secretary Henry Paulson is now before Congress seeking authorization to purchase hundreds of billions of dollars in troubled assets to prevent a cascading series of collapses.

In a few weeks, voters will go to the polls to choose new leaders to manage the crisis. The winner on November 4 will likely be chosen on the credibility of his plan to stabilize the system and to construct policies that will balance the need for oversight and innovation.

In this issue of FOCUS, three Rutgers economists with diverse scholarly interests will offer their perspectives on the events leading up to the current predicament, the prospect of a prolonged downturn, and the likelihood that political leaders will seek significant reforms in the regulation of financial markets.

Norman Glickman, 

university professor, Center for Urban Policy Research at the Edward J. Bloustein School of Planning and Public Policy, works with community development organizations throughout the country on issues of economic development and poverty. He is the recipient of a Certificate of Special Achievement from the U.S. Department of Housing and Urban Development (HUD) and two Fulbright-Hays professorships. He has advised all levels of government and served in HUD's Office of Policy Development and Research during the Carter administration. In 2003, he was part of a Rutgers team that received a five-year, $10-million grant from the National Science Foundation to establish a Center for Learning and Teaching. Glickman has written and edited more than 10 books and    monographs and 100 articles on issues ranging from urban economic development to econometric analysis and international direct investment.

Glickman's perspective >

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Susan Feinberg 

is an associate professor of management and global business at Rutgers Business School–Newark and New Brunswick. She is an economist and a specialist in international trade and foreign direct investment. Feinberg is also a personal finance enthusiast and teaches “Love and Money,” a course designed to teach Rutgers undergraduates personal finance and life management skills. Feinberg’s research focuses on how changes in countries’ economic and policy environments affect the location and operating decisions of U.S. multinational firms. Her research has been published in diverse journals, including the American Economic Review, Journal of International Business Studies, Strategic Management Journal, and the Journal of Industrial Economics.

Feinberg's perspective >

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John D. Worrall 

is a professor of economics at the College of Arts and Sciences, Camden, and a member of the graduate faculty at the School of Arts and Sciences and the School of Management and Labor Relations in New Brunswick. Worrall's research interests are in insurance, labor markets, and public policy. His work has appeared in the Economic Journal, Journal of Law and Economics, and Review of Economics and Statistics, among others. He  is associate editor of the Journal of Risk & Insurance.

Worrall's perspective >