Housing Crisis 2008
House price appreciate to its peak
An opportunity to invest in
Buy and resell in a secondary
Lending processes get way easier
Lenders willing to ta
Finance 482 Research Paper
Housing Crisis 2008 and Government Intervention
- Before 2007, reselling subprime mortgages was very popular and an easy way to earn extra income in the secondary market.
- Housing prices start to drop a => housing market
Before 2007, the U.S economy was very stable and so was the mortgage market. Indeed,
buying and reselling subprime mortgages were very popular and it was an easy way to earn extra
income for those who did
7-1. What are the four components of financial regulation?
Four components of financial regulation:
1. Safe and soundness
2. Deposit Insurance
3. Assurance of adequate capital for financial institutions.