Mortgage Credit Expansion

Jaime Luque
Additional contact information
Jaime Luque: 1University of Wisconsin-Madison, USA

Chapter 3 in The Subprime Crisis:Lessons for Business Students, 2017, pp 21-27 from World Scientific Publishing Co. Pte. Ltd.

Abstract: In order to get an adequate understanding of the events that led up to the subprime mortgage crisis, it is pertinent to first analyze the period of major credit expansion and increased homeownership that occurred between 2000 and 2006. What economic factors created incentives for this extraordinary increase in credit and home sales? Was this caused by a positive consumer wealth effect arising from the reduced cost of borrowing? Could an irresponsible expansion in risky lending be to blamed? Or were consumers guided by an irrational expectation of rising house prices? Pinpointing the source of this expansion can aid us in comprehending consumer behavior…

Keywords: Subprime Crisis; Great Recession; 2009 Recession; Mortgage; Financial Market; Preventing Recession; 2009 Crisis; Interest Rates (search for similar items in EconPapers)
JEL-codes: G01 G1 (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.worldscientific.com/doi/pdf/10.1142/9789813200043_0003 (application/pdf)
https://www.worldscientific.com/doi/abs/10.1142/9789813200043_0003 (text/html)
Ebook Access is available upon purchase.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:wschap:9789813200043_0003

Ordering information: This item can be ordered from

Access Statistics for this chapter

More chapters in World Scientific Book Chapters from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().