Government guarantees of private debt deplete equity. The depletion is greatest during periods when the probability of … asset values to market. Less widely recognized is that guaranteed debt creates an incentive to pay equity out to owners … debt up to the limit the government permits. Declines in asset values raise debt in relation to asset values and thus …

this paper, we begin by documenting that much of the increase in the demand for assets in the US in the 30 years prior to … Covid represented greater desire to hold assets by households of given age and income levels. For example, if we focus on …

driven by misreporting items that authorities cannot cross-verify, such as overstating debt and understating non …-third-party-reported business assets. Additionally, the wealthiest taxpayers respond to wealth tax increases by hiding assets in hard …

target that is reached slowly, (5) pre-crisis, leverage was predominantly adjusted by liquidating assets. After the crisis …