Minority mortgage market experiences leading up to and during the financial crisis

Stephen L. Ross, 22 August 2014

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The foreclosure crisis and the growth of subprime lending that preceded the crisis have disproportionately affected low income and minority neighbourhoods (Geradi and Willen 2009, Fisher et al. 2010, Mayer and Pence 2007, Edminston 2009) and have had significant negative consequences for minority homeownership (Geradi and Willen 2009).

Topics: Global crisis, Poverty and income inequality
Tags: creditor discrimination, minority lending, mortgage crisis, subprime crisis

The impact of asymmetric information about collateral values in mortgage lending

Johannes Stroebel, 13 December 2012

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The mortgage market was the starting point for several of the post-Lehman crises: the subprime crisis, the Irish crisis, the Spanish crisis, and many more. It is a market typified by massive information asymmetries, and it has been argued that a market based on highly asymmetric information contributed to the buildup of bad mortgage debt during the first half of the last decade.

Topics: Global crisis, Macroeconomic policy
Tags: asymmetric information, global crisis, subprime crisis

The Term Auction Facility effect on liquidity risk exposure

Stefano Puddu, Andreas Wälchli, 12 December 2012

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As the interbank credit market was under serious stress at the end of 2007, the Federal Reserve launched the Term Auction Facility (TAF) with the aim of injecting liquidity into the interbank market. Cecchetti (2007) explains that banks were reluctant to lend to other banks, mainly because of uncertainty about the asset quality on the balance sheets of the potential borrowers.

Topics: Financial markets
Tags: global crisis, liquidity risk, subprime crisis, term auction facility

Reflections on the curious contrast of public policies between Germany and the US: Real estate versus human capital

Joshua Aizenman, Ilan Noy, 25 August 2012

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During the years leading to the global crisis, the US and Germany were the dominant growth poles in the Americas and Europe, respectively (ADD CITE). Their position reflected their growth performance and their dominant size.

Topics: Education, Global crisis, Macroeconomic policy
Tags: education, Germany, global crisis, housing, subprime crisis, US

Global crises and equity market contagion

Geert Bekaert, Michael Ehrmann, Marcel Fratzscher, Arnaud Mehl, 12 August 2011

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The collapse of global equity markets between August 2007 and March 2009 has been part of the most severe global crisis since the Great Depression.

Topics: Financial markets, Global crisis
Tags: Eurozone crisis, financial crises, global crisis, subprime crisis

Three's company: Wall Street, Capitol Hill, and K Street

Deniz Igan, Prachi Mishra, 11 August 2011

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At the end of 2007as markets grappled with early stages of what would become the worst financial crisis in the post-WWII era and a severe recession seized the US economythe Wall Street Journal reported that two of the largest mortgage lenders in the US spent millions of dollars in political donations, campaign contributions, and lobbying activities from 2002 t

Topics: Global crisis, Politics and economics
Tags: Corruption, financial regulation, global crisis, lobbying, subprime crisis, US

Foreclosures, house prices, and the real economy

Atif Mian, Francesco Trebbi, Amir Sufi, 10 February 2011

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How does a negative shock to the economy get amplified into a severe and long-lasting economic slump? The answer may be found in your house. An extensive body of theoretical research shows that the forced sale of durable goods – in many cases a house – can have two undesirable consequences. First, the price of these goods is driven down.

Topics: Global crisis, Macroeconomic policy
Tags: foreclosures, global crisis, house prices, subprime crisis, US

Vox’s annual break and some holiday reading tips

Richard Baldwin, 25 December 2010

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After months of preparatory work, Vox was launched in June 2007. The first weeks were going well – and then the subprime crisis struck.

Topics: Frontiers of economic research
Tags: ECB, Eurozone crisis, global crisis, subprime crisis

Crisis “shock factors” and the cross-section of global equity returns

Charles W Calomiris, Inessa Love, Maria Soledad Martinez Peria, 11 December 2010

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The financial crisis of 2007-2008 was a significant shock to the financial system and the global economy.

Topics: Global crisis, International finance
Tags: global crisis, Stock returns, subprime crisis

Systemic liquidity risk and bankruptcy exceptions

Enrico Perotti, 13 October 2010

"Systemic liquidity risk and bankruptcy exceptions", CEPR Policy Insight No. 52, can be downloaded free of charge from the CEPR website at http://www.cepr.org/pubs/PolicyInsights/PolicyInsight52.pdf.

URL: http://www.cepr.org/pubs/PolicyInsights/PolicyInsight52.pdf
Topics: Financial markets
Tags: Bankruptcy, financial regulation, subprime crisis

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