Slide 1
... Mae and Freddie Mac, whose reckless lending practices necessitated a $200 billion government rescue last month. It is dangerous because misdiagnosing the causes of the crisis could lead both to regulatory overkill and to more reckless risk taking by Fannie, Freddie, or newly created government-spons ...
... Mae and Freddie Mac, whose reckless lending practices necessitated a $200 billion government rescue last month. It is dangerous because misdiagnosing the causes of the crisis could lead both to regulatory overkill and to more reckless risk taking by Fannie, Freddie, or newly created government-spons ...
Rent or buy? Structural differences in Europe
... In Europe, Switzerland and Germany have long trailed at the bottom of the league in terms of residential ownership, despite increases versus the 1990s. The reasons for this are complex: both countries have a relatively well developed rental market – to some extent the reason for and the consequence ...
... In Europe, Switzerland and Germany have long trailed at the bottom of the league in terms of residential ownership, despite increases versus the 1990s. The reasons for this are complex: both countries have a relatively well developed rental market – to some extent the reason for and the consequence ...
Property Rights and the Rise of the Western World
... Evidence: foreclosures have dramatically weakened prices since they increase the supply of housing units available on the market. Foreclosures began due to sub-prime defaults, but now are being complemented by households who are unemployed and are being rejected by credit markets. Sheila Bair (of FD ...
... Evidence: foreclosures have dramatically weakened prices since they increase the supply of housing units available on the market. Foreclosures began due to sub-prime defaults, but now are being complemented by households who are unemployed and are being rejected by credit markets. Sheila Bair (of FD ...
Document
... Final Thoughts • Assume 2010 will look like second half 2009 • Worry about bubbles and second dips – series of mini-recessions/mini-recoveries • With luck, economy can build on small gains – Benefits from weak dollar; census hiring begets more hiring; foreclosures abate and construction starts; rea ...
... Final Thoughts • Assume 2010 will look like second half 2009 • Worry about bubbles and second dips – series of mini-recessions/mini-recoveries • With luck, economy can build on small gains – Benefits from weak dollar; census hiring begets more hiring; foreclosures abate and construction starts; rea ...
Understanding the Role of the Federal Reserve in Today`s Economy
... If you do not pay for a credit check: Borrower is not a good risk; you do make the loan: ...
... If you do not pay for a credit check: Borrower is not a good risk; you do make the loan: ...
Banks can handle home price fall, says Glenn Stevens
... to stress-test housing portfolios that I’m aware of ... none of those show a very bad outcome for the system. “Now, some losses get incurred, but by and large the system manages with that OK. “We wouldn’t have major institutions getting even close to failure. Not even ...
... to stress-test housing portfolios that I’m aware of ... none of those show a very bad outcome for the system. “Now, some losses get incurred, but by and large the system manages with that OK. “We wouldn’t have major institutions getting even close to failure. Not even ...
Excerpt from Baupost Group 2007 Year
... market in early 1930, the pain you would have felt by 1933 would hardly have been different from the agony of those who had invested at the 1929 peak. We will not be certain until much later whether the so-called bargains of January 2008 were truly undervalued or merely dangerous temptations to valu ...
... market in early 1930, the pain you would have felt by 1933 would hardly have been different from the agony of those who had invested at the 1929 peak. We will not be certain until much later whether the so-called bargains of January 2008 were truly undervalued or merely dangerous temptations to valu ...
LESSONS FROM THE HOUSING CRISIS BOG_Karakitsos
... – Flood the system with liquidity to restore previous levels of asset prices – But risk creating new bubbles (US Treasuries) ...
... – Flood the system with liquidity to restore previous levels of asset prices – But risk creating new bubbles (US Treasuries) ...
Housing Market Deterioration, Subprime Mortgage Crisis and
... recent bursting of house price bubbles Provide perspectives on the current house price crash by comparing it with previous housing episode in terms Behavior of macroeconomic and financial variables in the period leading up to the boom and peak in house prices and after the bursting of the price b ...
... recent bursting of house price bubbles Provide perspectives on the current house price crash by comparing it with previous housing episode in terms Behavior of macroeconomic and financial variables in the period leading up to the boom and peak in house prices and after the bursting of the price b ...
The crisis
... oversight, more transparency, supervision of giants, accounting that values risk better, safer financial transactions (derivatives). Source: http://www.economist.com/node/12263158?story_id=12263158 ...
... oversight, more transparency, supervision of giants, accounting that values risk better, safer financial transactions (derivatives). Source: http://www.economist.com/node/12263158?story_id=12263158 ...
Market Efficiency, Housing Affordability and the Real Estate “Bubble”
... and household income to see how those variables have swayed. Interest rates adjust to record lows Household income and inflation were modest Possible drivers for housing affordability ...
... and household income to see how those variables have swayed. Interest rates adjust to record lows Household income and inflation were modest Possible drivers for housing affordability ...
United States housing bubble
The United States housing bubble was an economic bubble affecting many parts of the United States housing market in over half of American states. Housing prices peaked in early 2006, started to decline in 2006 and 2007, and reached new lows in 2012. On December 30, 2008, the Case-Shiller home price index reported its largest price drop in its history. The credit crisis resulting from the bursting of the housing bubble is—according to general consensus—the primary cause of the 2007–2009 recession in the United States.Increased foreclosure rates in 2006–2007 among U.S. homeowners led to a crisis in August 2008 for the subprime, Alt-A, collateralized debt obligation (CDO), mortgage, credit, hedge fund, and foreign bank markets. In October 2007, the U.S. Secretary of the Treasury called the bursting housing bubble ""the most significant risk to our economy.""Any collapse of the U.S. housing bubble has a direct impact not only on home valuations, but the nation's mortgage markets, home builders, real estate, home supply retail outlets, Wall Street hedge funds held by large institutional investors, and foreign banks, increasing the risk of a nationwide recession. Concerns about the impact of the collapsing housing and credit markets on the larger U.S. economy caused President George W. Bush and the Chairman of the Federal Reserve Ben Bernanke to announce a limited bailout of the U.S. housing market for homeowners who were unable to pay their mortgage debts.In 2008 alone, the United States government allocated over $900 billion to special loans and rescues related to the U.S. housing bubble, with over half going to Fannie Mae and Freddie Mac (both of which are government-sponsored enterprises) as well as the Federal Housing Administration. On December 24, 2009, the Treasury Department made an unprecedented announcement that it would be providing Fannie Mae and Freddie Mac unlimited financial support for the next three years despite acknowledging losses in excess of $400 billion so far. The Treasury has been criticized for encroaching on spending powers that are enumerated for Congress alone by the United States Constitution, and for violating limits imposed by the Housing and Economic Recovery Act of 2008.