by Summary:
A new explanation of the financial crisis arguing that the proximate cause was not sub-prime but flippers that caught when the music stopped, and the lenders that were funding them. The sub-prime borrowers were a knock-on effect of loose lending. The grim tale of America’s “subprime mortgage crisis” delivers one of those stinging moral slaps that Americans seem to favor in their histories. Poor people were reckless and stupid, banks got greedy. Layer in some Wall Street dark arts, and there you have it: a global financial crisis.Dark arts notwithstanding, that’s not what really happened, though.Mounting evidence suggests that the notion that the 2007 crash happened because people with shoddy credit borrowed to buy houses they couldn’t afford is just plain wrong. The latest comes in a
Topics:
Mike Norman considers the following as important: Financial Crisis, US housing crisis
This could be interesting, too:
A new explanation of the financial crisis arguing that the proximate cause was not sub-prime but flippers that caught when the music stopped, and the lenders that were funding them. The sub-prime borrowers were a knock-on effect of loose lending. The grim tale of America’s “subprime mortgage crisis” delivers one of those stinging moral slaps that Americans seem to favor in their histories. Poor people were reckless and stupid, banks got greedy. Layer in some Wall Street dark arts, and there you have it: a global financial crisis.Dark arts notwithstanding, that’s not what really happened, though.Mounting evidence suggests that the notion that the 2007 crash happened because people with shoddy credit borrowed to buy houses they couldn’t afford is just plain wrong. The latest comes in a
Topics:
Mike Norman considers the following as important: Financial Crisis, US housing crisis
This could be interesting, too:
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A new explanation of the financial crisis arguing that the proximate cause was not sub-prime but flippers that caught when the music stopped, and the lenders that were funding them. The sub-prime borrowers were a knock-on effect of loose lending.
The grim tale of America’s “subprime mortgage crisis” delivers one of those stinging moral slaps that Americans seem to favor in their histories. Poor people were reckless and stupid, banks got greedy. Layer in some Wall Street dark arts, and there you have it: a global financial crisis.
Dark arts notwithstanding, that’s not what really happened, though.
Mounting evidence suggests that the notion that the 2007 crash happened because people with shoddy credit borrowed to buy houses they couldn’t afford is just plain wrong. The latest comes in a new NBER working paper arguing that it was wealthy or middle-class house-flipping speculators who blew up the bubble to cataclysmic proportions, and then wrecked local housing markets when they defaulted en masse.
Quartz
House flippers triggered the US housing market crash, not poor subprime borrowers
Gwynn Guilford