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

Stephen L. Ross 22 August 2014

a

A

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).

a

A

Topics:  Global crisis Poverty and income inequality

Tags:  subprime crisis, mortgage crisis, creditor discrimination, minority lending

The impact of asymmetric information about collateral values in mortgage lending

Johannes Stroebel 13 December 2012

a

A

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.

a

A

Topics:  Global crisis Macroeconomic policy

Tags:  subprime crisis, asymmetric information, global crisis

The Term Auction Facility effect on liquidity risk exposure

Stefano Puddu, Andreas Wälchli 12 December 2012

a

A

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. Between December 2007 and March 2010, the Fed auctioned a total of $3.81 trillion collateralised funds, with maturities of 28 or 84 days.

a

A

Topics:  Financial markets

Tags:  subprime crisis, liquidity risk, global 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

a

A

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. Both countries were characterised by contrasting patterns of public policies towards home ownership and education – the US put greater public commitment to subsiding home ownership, whereas Germany put much greater public commitment towards education and vocational training.

a

A

Topics:  Education Global crisis Macroeconomic policy

Tags:  Germany, education, US, housing, subprime crisis, global crisis

Global crises and equity market contagion

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

a

A

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. While the crisis initially had its origin in the US in a relatively small market segment, the subprime mortgage market, it rapidly spread across virtually all economies, with many countries experiencing even sharper equity market crashes than the US. This makes this episode an ideal laboratory to revisit the debate about the presence and sources of contagion in global equity markets.

a

A

Topics:  Financial markets Global crisis

Tags:  subprime crisis, financial crises, global crisis, Eurozone crisis

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

Deniz Igan, Prachi Mishra 11 August 2011

a

A

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 through 2006 (Simpson 2007).

a

A

Topics:  Global crisis Politics and economics

Tags:  US, Corruption, subprime crisis, financial regulation, lobbying, global crisis

Foreclosures, house prices, and the real economy

Atif Mian, Francesco Trebbi, Amir Sufi 10 February 2011

a

A

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. Second, these negative price effects can lead to a significant decline in real economic activity (see for example Shleifer and Vishny 1992, Kiyotaki and Moore 1997, Krishnamurthy 2009, Lorenzoni 2008, and Shleifer and Vishny 2010 for a recent discussion).

a

A

Topics:  Global crisis Macroeconomic policy

Tags:  US, house prices, subprime crisis, global crisis, foreclosures

Vox’s annual break and some holiday reading tips

Richard Baldwin 25 December 2010

a

A

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

The subprime crisis establishes Vox’s niche

On the 9th, 10th, and 13th of August 2007, the US Fed injected a total of $38 billion into the US banking system; simultaneously, the ECB injected ten times that much into Europe’s banking system.

This action – which made headlines around the world – seemed inexplicable.

a

A

Topics:  Frontiers of economic research

Tags:  ECB, subprime crisis, global crisis, Eurozone crisis

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

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

a

A

The financial crisis of 2007-2008 was a significant shock to the financial system and the global economy. The shock that originated in the mortgage market and banking system reduced the supply of credit, led to distressed sales of risky assets as banks and investors scrambled to shore up their liquidity and capital ratios, and plunged the global economy into a severe recession, one in which economic activity either slowed or contracted (IMF 2009), and global trade collapsed (Baldwin 2009).

a

A

Topics:  Global crisis International finance

Tags:  subprime crisis, global crisis, Stock returns

Systemic liquidity risk and bankruptcy exceptions

Enrico Perotti,

Date Published

Wed, 10/13/2010

a

A

Show in Editors Choice Box?

0

cepr_featured

1

Display Order

0

Display Order

-10

Partners

CEPR

Topics

Financial markets

URL

http://www.cepr.org/pubs/PolicyInsights/PolicyInsight52.pdf

"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.

Tags
subprime crisis, financial regulation, Bankruptcy

Pages

Events