The pessimistic perspectives of the first two AEI “Deflating Bubble” conferences in March and October 2007 have been more than borne out by events. Announced losses from the housing and mortgage bust exceed $120 billion, and total loss estimates run as high as $400 billion. Problems that began with subprime mortgage lenders have seeped into other markets, including those for securitized assets, commercial real estate, mortgage insurance, and bond insurance. They have also been manifested through increasing write-downs on Wall Street and in commercial banks.

 Are we nearing the end of the bust? What is next—financially, economically, and politically? These and related questions will be discussed by AEI economists Desmond Lachman and John H. Makin; New York University professor of economics Nouriel Roubini; R. Christopher Whalen, managing director of Institutional Risk Analytics; and Thomas Zimmerman, managing director at UBS Investment Bank. AEI resident fellow Alex J. Pollock will moderate.