Subprime Crisis, The: Lessons For Business Students

by Jaime Perez Luque

Overview

The first major global economic contraction of the 21st century, or the 'Great Recession', as it is more commonly known, began in December of 2007, and would prove to be one of the most catastrophic economic events in postmodern history. The bursting of the American housing bubble and the subprime mortgage crisis that followed are widely attributed as being the primary causes for this economic downturn.The content of this book presents an in-depth analysis of several of the leading causes of the subprime crisis, as well as the subsequent measures that were used to contain a widespread economic recession. It is the aim of this book to provide adequate information and tools for readers to gain insight on how we can prevent the same mistakes from happening again. This analysis also explores an interesting question when considering public policy; was the economic disaster, that ensued, caused by overzealous consumers who borrowed more than they could afford, or was it caused by institutional entities that gambled away the American economy?

Product Details

ISBN-13:	9789813200036
Publisher:	World Scientific Publishing Company, Incorporated
Publication date:	04/10/2017
Pages:	236
Product dimensions:	6.30(w) x 9.00(h) x 0.80(d)

Table of Contents

Preface vii

About the Editor xv

Part I Overview of the Subprime Mortgage Crisis 1

Chapter 1 Understanding the Subprime Crisis 3

Chapter 2 What Caused the Subprime Crisis? 13

Chapter 3 Mortgage Credit Expansion 21

Chapter 4 Household Consumption 29

Chapter 5 Judicial Requirements for Foreclosures 39

Chapter 6 Political Economy During the Bust 47

Chapter 7 REITs 55

Chapter 8 U.S. Homeownership Rates 63

Part II Foreclosures 71

Chapter 9 Estimates and Sources of Price Declines 73

Chapter 10 Credit Experiences 81

Chapter 11 Forced Sales and House Prices 91

Chapter 12 Contagion in Housing Markets 99

Chapter 13 Supply or Disamenity? 107

Chapter 14 Post-foreclosure Experiences 115

Chapter 15 Foreclosure Externalities 123

Part III Government Intervention 131

Chapter 16 The Role of the Affordable Housing Goals 133

Chapter 17 The Fed's MBS Mortgage Program 141

Chapter 18 Supply of Mortgage Credit 153

Chapter 19 The Home Affordable Modification Program 161

Part IV House Prices and Lending Standards 169

Chapter 20 Home Equity-Based Borrowing 171

Chapter 21 Housing Prices During the Boom 179

Chapter 22 Lending Standards 189

Chapter 23 Lax Screening 197

Bibliography 207

Index 211