Thus, stronger capital standards must be complemented with supervisory tools that incorporate dynamic, macroprudential elements. Two important such tools that have been adopted by the Federal Reserve since the onset of the financial crisis are stress testing and firm-specific capital planning.
In some of our cities, purchasing a home had become a very difficult stretch for many people, and this had become a major social issue. Today, the talk is about prices falling in our two largest cities. We have moved almost seamlessly from worrying that prices were going up, to worrying that they are going down.