promising stabilization work being done in cleveland, detroit, and phoenix. these videos and related data tools can be found at www. federalreserve. gov / communitydev / neighborhoodrevitalization / stablecommunities. htm. see board of governors of the federal reserve system ( 2011 ), putting data to work : data - driven approaches to strengthening neighborhoods ( pdf ) ( washington : board of governors of the federal reserve system, december ). more information about vehicles for change is available at www. vehiclesforchange. org. bis central bankers ’ speeches one of the more innovative solutions to this issue that i have seen was developed by an organization in dallas that aims to move the jobs to the workers, rather than vice versa. lone star investment advisors llc is a private equity fund that invests in texas companies located in, or willing to move to, low - income census tracts. the fund ’ s managers have focused on manufacturing and distribution companies that can create jobs in the state ’ s lower - income communities. one of the businesses in the fund ’ s portfolio, primesource food service equipment, moved from an affluent northern dallas suburb to south dallas, where the poverty rate was higher than 40 percent, relocating more than 100 employees and hiring new employees from south dallas. i raise this example because it demonstrates what a little imagination can do to solve the problem of connecting people with jobs. moreover, this double bottom - line approach to investments – making a profit while benefitting the community – makes this kind of activity attractive to bankers with cra obligations and other socially - minded investors. community development : an entrepreneurial enterprise this innovative example serves as a reminder that successful community development is an entrepreneurial enterprise. thinking about community development this way reminds me of a presentation made at a recent federal reserve research conference on small business and entrepreneurship. 6 amy wilkinson, senior fellow at harvard ’ s kennedy school center for business and government, has conducted research to identify the skill sets of high - impact entrepreneurs and small business leaders. the skills she identified are, not surprisingly, applicable to community development. they include being able to spot opportunities that others don ’ t see, managing complexity, reiterating ideas and revamping plans repeatedly, experimenting and failing wisely, networking to create solutions, and, as amy put it, “ unleashing generosity ” in ways that create reciprocity within the network. no doubt these sound familiar. community development is an ongoing process of identifying and understanding the

from $ 22. 7 trillion in the first quarter of 2006 to $ 20. 9 trillion in the fourth quarter of 2007 ( down 8. 1 percent from the first quarter of 2006 ). it then declined to $ 18. 5 trillion in the third quarter of 2008 ( down 18. 6 percent from the first quarter of 2006 ) and to $ 16. 0 trillion in the fourth quarter of 2011 ( down 29. 7 percent from the first quarter of 2006 ). the stock market wealth of u. s. households peaked at $ 18. 1 trillion in the first quarter of 2000 and fell $ 6. 2 trillion to $ 11. 9 trillion through the third quarter of 2001. after a short - lived recovery, stock market wealth bottomed at $ 9. 9 trillion in the third quarter of 2002. overall, stock market wealth fell $ 8. 3 trillion ( or 46 percent ) between its peak in the first quarter of 2000 and its trough in the third quarter of 2002. the flow of funds accounts are published quarterly and are available at www. federalreserve. gov / releases / z1. bis central bankers ’ speeches various forms of short - term wholesale funding, including commercial paper, repos, securities lending transactions, and interbank loans. the ease, flexibility, and low perceived cost of short - term funding also supported a broader trend toward higher leverage and greater maturity mismatch in individual shadow banking institutions and in the sector as a whole. while banks also rely on short - term funding and leverage, they benefit from a government - provided safety net, including deposit insurance and backstop liquidity provision by the central bank. shadow banking activities do not have these safeguards, so they employ alternative mechanisms to gain investor confidence. among these mechanisms are the collateralization of many shadow banking liabilities ; regulatory or contractual restrictions placed on portfolio holdings, such as the liquidity and credit quality requirements applicable to money market mutual funds ; and the imprimaturs of credit rating agencies. indeed, the very foundation of shadow banking and its rapid growth before the crisis was the widely held view ( among both investors and regulators ) that these safeguards would protect shadow banking activities against runs and panics, similar to the protection given to commercial banking by the government safety net. unfortunately, this view turned out to be wrong. when it became clear to investors that these alternative protections might not be adequate to protect against losses, widespread flight from the shadow banking system occurred, with pernicious dynamics reminiscent of