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Figure 4
Growth of Mortgage-Backed Securities Market (Steady since 1980)

Source: Estrelle (2002)
Estrella writes that the visibility of the trend of securitization is clear in the following chart and it is shown as having intensified in the 1980s and that this trend grown substantially in terms of new market entrants and a wider variety of assets securitized
Figure 5
Securitized Proportion of Mortgage and Consumer Credit Markets (2002)

Source: Estrella (2002)
The study of Berger and Bouwman states that in the realm of banking theory an important economic role of banks is to create liquidity, but the absence of comprehensive measures of bank liquidity creation makes it difficult to determine the magnitude of liquidity creation and its inter-temporal patterns. (2007) Berger and Bouwman relate findings that indicate that more than $1.5 trillion in liquidity in 2003 was created by banks and that the creation of liquidity grew by approximately two-thirds in real terms between 1993 and 2003 despite a slight decline in the period beginning 2000 and through 2003. The work of Berger and Bouwman makes examination of the manner in which capital impacts the creation of liquidity and state that it is predicted by some theorists that

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