Download or read book The Great American Housing Bubble written by Adam J. Levitin and published by Harvard University Press. This book was released on 2020-06-09 with total page 401 pages. Available in PDF, EPUB and Kindle. Book excerpt: The definitive account of the housing bubble that caused the Great Recession—and earned Wall Street fantastic profits. The American housing bubble of the 2000s caused the worst global financial crisis since the Great Depression. In this definitive account, Adam Levitin and Susan Wachter pinpoint its source: the shift in mortgage financing from securitization by Fannie Mae and Freddie Mac to “private-label securitization” by Wall Street banks. This change set off a race to the bottom in mortgage underwriting standards, as banks competed in laxity to gain market share. The Great American Housing Bubble tells the story of the transformation of mortgage lending from a dysfunctional, local affair, featuring short-term, interest-only “bullet” loans, to a robust, national market based around the thirty-year fixed-rate mortgage, a uniquely American innovation that served as the foundation for the middle class. Levitin and Wachter show how Fannie and Freddie’s market power kept risk in check until 2003, when mortgage financing shifted sharply to private-label securitization, as lenders looked for a way to sustain lending volume following an unprecedented refinancing wave. Private-label securitization brought a return of bullet loans, which had lower initial payments—enabling borrowers to borrow more—but much greater back-loaded risks. These loans produced a vast oversupply of underpriced mortgage finance that drove up home prices unsustainably. When the bubble burst, it set off a destructive downward spiral of home prices and foreclosures. Levitin and Wachter propose a rebuild of the housing finance system that ensures the widespread availability of the thirty-year fixed-rate mortgage, while preventing underwriting competition and shifting risk away from the public to private investors.

Download or read book Preventing House Price Bubbles written by James R. Follain and published by Lincoln Inst of Land Policy. This book was released on 2012-07-03 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: The recent boom and bust in house prices generated widespread fallout, affecting metropolitan areas across the country. But the extent of the damage varied widely, suggesting that local market conditions also played an important role in determining how the crisis played out. As a result, national aggregates were an unreliable guide to both housing performance and the design of policies to mitigate the crisis. Based on their recent research for the Lincoln Institute, James R. Follain and Seth H. Giertz document how econometric models can be used to address some of the complex issues that have arisen since the house price bust. In particular, these models provide valuable insights into the interrelationships between house price patterns and their drivers--including new drivers that changed the fundamental dynamics of housing markets, such as the size of the distressed real estate inventory, the pace of price appreciation, and the amount of subprime lending. These changes made policymaking in mid-crisis especially challenging. To illustrate this point, the authors analyze one of the major programs put in place to stem the spread of foreclosures. The Housing Affordable Modification Program (HAMP) was developed in 2007 just as the destructive fallout of the crisis began to appear. Traditional tools for measuring and managing the crisis were insufficient. The design of HAMP thus rested upon a number of critical judgments about borrower and lender behavior made without benefit of strong empirical support. While recognizing the challenges of responding to a bust once it has begun, the authors suggest that attempts to deal with any future crises of this type would benefit from certain different design decisions: * an initial focus on hardest-hit markets to fine-tune program parameters, * development of longer-term forecasts of house prices for local markets, * greater efforts to foster more cooperation among all levels of government, and * fuller recognition of the inherent weaknesses of securitization. The report then discusses how econometric results can also be used to identify and prevent, or at least limit, the formation of future house price bubbles. Analysts often mention two specific options for combating unsustainable price increases: monetary policy and countercyclical capital policies. Follain and Giertz argue that monetary policy is of limited use in this arena, given that price appreciation varies so widely across local markets. Countercyclical capital buffers--which would raise capital requirements for financial institutions during the initial stages of the price bubble and reduce them during the period of decline--are a much more promising policy direction because they could be designed to put the brakes on only in those markets where bubbles appear to be developing. The growing availability of geographically granular data make this approach to bubble prevention much more viable than in the past.

Download or read book The Economics of the US House Price Bubble in the early 21st century written by Michael Kemmer and published by GRIN Verlag. This book was released on 2012-07-06 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt: Seminar paper from the year 2009 in the subject Business economics - Economic and Social History, grade: 1,7, University of Applied Sciences Berlin, language: English, abstract: Why do we have a financial crisis today? Apparently stable and profitable companies, banks and even markets begin to struggle. Where are the roots for this development? The financial crisis of today can be tracked back to the housing bubble and to the following housing crisis in the USA. But who where the participants and what were their actions? The following chapters try to give some explanations and reasons for this. The housing bubble in the U.S and the following financial crisis had got their own reasons and drives. It is important to know these explanations and mechanisms to avoid such developments in the future. Managers and leaders should know, which reactions follow which actions. The objective of this assignment is to explain the reasons for the U.S housing bubble and the mistakes made by the participants of this development. The work on the assignment started with a mind map of questions like: who are participants of the house bubble crisis, what are the connections between these participants, and what were their actions. All findings of this assignment are mainly Internet based and complemented by literature sources regarding topics like financial crisis, housing bubble, and subprime mortgage crisis. After providing a brief overview of the advance of the housing bubble, with a look to the Asia crisis, the premises of the housing bubble are explained. Following to that the housing boom is described in more detail. Afterwards, the focus will be changed to customer loyalty. Along with that the customer value and satisfaction is very important for a long term company-customer relationship. At the end of this assignment the conclusion sums up with the genesis of the housing bubble.

Download or read book The Great Housing Bubble written by Lawrence Roberts and published by Monterey Cypress LLC. This book was released on 2008 with total page 251 pages. Available in PDF, EPUB and Kindle. Book excerpt: A detailed analysis of the psychological and mechanical causes of the biggest rally, and subsequent fall, of housing prices ever recorded. Examines the causes of the breathtaking rise in prices and the catastrophic fall that ensued to answer the question on every homeowner's mind: "Why did house prices fall?"--Page 4 of cover

Download or read book Monetary Policy and the Housing Bubble written by Jane Dokko and published by . This book was released on 2009 with total page 76 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Housing Boom and Bust written by Thomas Sowell and published by Basic Books (AZ). This book was released on 2009-05-12 with total page 194 pages. Available in PDF, EPUB and Kindle. Book excerpt: Explains how we got into the current economic disaster that developed out of the economics and politics of the housing boom and bust. The "creative" financing of home mortgages and "creative" marketing of financial securities based on these mortgages to countries around the world, are part of the story of how a financial house of cards was built up--and then collapsed.

Download or read book Understanding Housing Bubbles written by Bill McKim and published by Lulu.com. This book was released on 2012-03-26 with total page 169 pages. Available in PDF, EPUB and Kindle. Book excerpt: This housing bubble book doesn't talk about what happened to people during the Housing Bubble. It explains what a housing bubble is, why they occur, what ended them, that they can't be prevented or controlled by regulation, and how to prevent them in the future. It shows that housing bubbles are always a bad thing for the economy, and why. The book can do all of that when other books and TV programs about the bubble couldn't, because it is based upon the realization that a Homemania occurred in which houses were not bought because they provided shelter and comfort but because they were appreciating in price very rapidly. This caused a cessation of mortgage defaults. This lead to the creation of an investment that paid a very high return with zero apparent risk. The investment produced no wealth, but greatly increased comsumption, thereby impoverishing the economy. Explains mortgage backed securities including CDOs, CDSs, and Synthetic CDOs. Shows who was and wasn't culpable.

Download or read book Recession Prevention Handbook Eleven Case Studies 1948 2007 written by Norman Frumkin and published by Taylor & Francis. This book was released on 2017-07-05 with total page 379 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book analyzes the performance of the economy and the economic policy actions of the Federal Reserve, the president, and the Congress in the twelve months preceding each of the eleven recession the United States has endured since the end of World War II. Incoroporating extensive real-time data, the book offers policy recommendations for preventing future recessions or at least limiting their impact.

Download or read book Preventing the Next Mortgage Crisis written by Dan Immergluck and published by Rowman & Littlefield. This book was released on 2015-08-20 with total page 201 pages. Available in PDF, EPUB and Kindle. Book excerpt: The great U.S. mortgage crisis was a transformative event that will reverberate for decades across families, neighborhoods, and cities. After years of research on various aspects of the crisis, Dan Immergluck examines what went wrong, identifying the factors that created the fragile housing finance system, which provided fertile ground for calamity. He also examines the federal response to the crisis, including who benefitted most from the response, and how a more effective and fair response could have been formulated. To reduce the incidence of future crises, Immergluck provides a pathway for building a more stable and fair housing finance system that would be less vulnerable to the booms and busts of global finance. Housing finance helps determine access to stable, decent-quality, affordable housing and also affects the geography of housing and educational opportunities. Thus, housing markets shape our communities, our neighborhoods, and our social and economic opportunities. Immergluck’s analysis and formulation of a way forward will be of particular interest to those concerned with urban form, neighborhood change and stability, and urban planning and policy, as well as those interested in housing and mortgage markets more generally.

Download or read book The Housing Bubble written by Kieran Trass and published by Penguin UK. This book was released on 2009-08-03 with total page 170 pages. Available in PDF, EPUB and Kindle. Book excerpt: After a long-running property market boom, all indications are that New Zealand is facing at least half a decade of slow or declining values. This trend is mirrored in most countries across the globe. Kieran Trass, real estate investor, advisor and commentator, reassures us that yes, we can still make money at all stages of the property cycle - slump, recovery and boom. The key is having the right knowledge and information. The Housing Bubble addresses all your real-estate questions, including:'How will we know when the slump is coming to an end?''When is it a good time to buy?' and'When will we see market recovery?

Download or read book Assessing High House Prices written by Charles P. Himmelberg and published by . This book was released on 2005 with total page 21 pages. Available in PDF, EPUB and Kindle. Book excerpt: "We construct measures of the annual cost of single-family housing for 46 metropolitan areas in the United States over the last 25 years and compare them with local rents and incomes as a way of judging the level of housing prices. Conventional metrics like the growth rate of house prices, the price-to-rent ratio, and the price-to-income ratio can be misleading because they fail to account both for the time series pattern of real long-term interest rates and predictable differences in the long-run growth rates of house prices across local markets. These factors are especially important in recent years because house prices are theoretically more sensitive to interest rates when rates are already low, and more sensitive still in those cities where the long-run rate of house price growth is high. During the 1980s, our measures show that houses looked most overvalued in many of the same cities that subsequently experienced the largest house price declines. We find that from the trough of 1995 to 2004, the cost of owning rose somewhat relative to the cost of renting, but not, in most cities, to levels that made houses look overvalued"--National Bureau of Economic Research web site.

Download or read book Cash in on the Coming Real Estate Crash written by David J. Decker and published by John Wiley & Sons. This book was released on 2006-04-03 with total page 290 pages. Available in PDF, EPUB and Kindle. Book excerpt: After five years of skyrocketing real estate prices, fueled by low interest rates, aggressive lenders, and relative economic prosperity, something has to give. Thanks to nonstop recent press coverage of America's overheated housing market, you are probably wary of buying your next property at the top of the market. So what should you do? Whether you're an individual investor or a homeowner, Cash In on the Coming Real Estate Crash shows you how to gauge the risk of a housing bust in your own local market. More importantly, it shows you how to hedge against a crash and position yourself to profit if the bubble bursts. Critical advice covers: * Identifying signs of an impending collapse * Balancing your real estate portfolio so a crash doesn't wipe you out * Conservative financing strategies * Developing a vision for value in any market * Buying low after the bubble bursts * Knowing when to sell * And many more strategies for making money when the real estate market collapses Peppered with true stories of how homeowners, small investors, and bona? fide real estate tycoons handled and mishandled past crashes, Cash In on the Coming Real Estate Crash is the resource you need to prepare for the comingdownturn, weather the storm, and emerge on the other side stronger than ever.

Download or read book Boom and Bust written by William Quinn and published by Cambridge University Press. This book was released on 2020-08-06 with total page 297 pages. Available in PDF, EPUB and Kindle. Book excerpt: Why do stock and housing markets sometimes experience amazing booms followed by massive busts and why is this happening more and more frequently? In order to answer these questions, William Quinn and John D. Turner take us on a riveting ride through the history of financial bubbles, visiting, among other places, Paris and London in 1720, Latin America in the 1820s, Melbourne in the 1880s, New York in the 1920s, Tokyo in the 1980s, Silicon Valley in the 1990s and Shanghai in the 2000s. As they do so, they help us understand why bubbles happen, and why some have catastrophic economic, social and political consequences whilst others have actually benefited society. They reveal that bubbles start when investors and speculators react to new technology or political initiatives, showing that our ability to predict future bubbles will ultimately come down to being able to predict these sparks.

Download or read book Crash and Beyond written by Andrew Farlow and published by OUP Oxford. This book was released on 2013-04-11 with total page 435 pages. Available in PDF, EPUB and Kindle. Book excerpt: In 2008, the world was plunged into a financial and economic crash. This book explores the roots of the crash, including the build-up of global economic imbalances, the explosion in the use of novel financial instruments, the mismanagement of risk, and the specific roles played by housing and debt. It reviews the evidence that on the eve of the crash all was not well and that many political and finance industry leaders ignored the dangers. The key events of the crash are described, and the main amplification mechanisms explained. An economics lens is used to dissect the bank rescue, paying particular attention to the hidden ways in which it worked, who will ultimately bear the costs, and to what degree new risks were created. The book evaluates the fiscal and monetary policies used to rescue economies, efforts to tackle unemployment, proposals for dealing with collapsing housing markets, austerity and the battles over long-term sovereign debt, the Eurozone crash, and the risks of future economic instability. It reviews reform-of mortgage markets, monetary policy, and banking-designed to make such disasters less likely in future. Written before, during, and in the years immediately after the crash, it is an engaging chronicle and comprehensive analysis of the events and thinking of these years. The book's arguments take on added authority given that the author had identified, and called attention to, key features of the crash before it happened.

Download or read book When Bubbles Burst written by John Calverley and published by Hachette UK. This book was released on 2011-01-11 with total page 250 pages. Available in PDF, EPUB and Kindle. Book excerpt: A meticulous examination of the financial crisis of 2008, exploring the implications and solutions for individuals, companies, and central banks.

Download or read book How to Write about Economics and Public Policy written by Katerina Petchko and published by Academic Press. This book was released on 2018-07-12 with total page 474 pages. Available in PDF, EPUB and Kindle. Book excerpt: How to Write about Economics and Public Policy is designed to guide graduate students through conducting, and writing about, research on a wide range of topics in public policy and economics. This guidance is based upon the actual writing practices of professional researchers in these fields and it will appeal to practitioners and students in disciplinary areas such as international economics, macroeconomics, development economics, public finance, policy studies, policy analysis, and public administration. Supported by real examples from professional and student writers, the book helps students understand what is expected of writers in their field and guides them through choosing a topic for research to writing each section of the paper. This book would be equally effective as a classroom text or a self-study resource. - Teaches students how to write about qualitative and quantitative research in public policy and economics in a way that is suitable for academic consumption and that can drive public policy debates - Uses the genre-based approach to writing to teach discipline-appropriate ways of framing problems, designing studies, and writing and structuring content - Includes authentic examples written by students and international researchers from various sub-disciplines of economics and public policy - Contains strategies and suggestions for textual analysis of research samples to give students an opportunity to practice key points explained in the book - Is based on a comprehensive analysis of a research corpus containing 400+ research articles in various areas of public policy and economics

Download or read book The Financial Crisis written by Phillip Inman and published by The Guardian. This book was released on 2013-02-05 with total page 73 pages. Available in PDF, EPUB and Kindle. Book excerpt: Every day brings another gloomy economic statistic. Countries heading for bankruptcy; banks running out of money; production down; shop prices up: and no end seems to be in sight. Newspapers and TV news shows dwell on the troubled times and report on the inability of politicians to present a coherent way for Britain and the rest of Europe to pull out of a long and seemingly never-ending depression. Nothing seems to give employers the confidence to hire more people, pay them an inflation-proof wage rise and reverse a long decline in living standards. Fully updated for 2013, The Financial Crisis: How Did We Get Here? explains what economic levers are available to policymakers, which ones are being pulled and which are being left idle. It examines what's being done to haul the global economy back to health ... and why we are sowing the seeds of another crisis in the future.