The Roots of the Crisis

Roderick Macdonald
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Roderick Macdonald: Université du Québec à Montréal

Chapter 2 in Genesis of the Financial Crisis, 2012, pp 37-68 from Palgrave Macmillan

Abstract: Abstract The average house costs the equivalent of two to five years of the average person’s revenue, and few people ever save that much cash. Those who do have already been working for more than five to ten years, since they have to spend money to eat, get to and from work, and pay for their shelter during that time. If a couple in their twenties wants to marry and start a family, it may be difficult for them to own their own home, since their expenses will be rising as the family grows, and as parents they will probably not both work outside the home continuously. Yet these are precisely the people who would most benefit from owning a home.

Keywords: Financial Crisis; Commercial Bank; Hedge Fund; Investment Bank; Mortgage Market (search for similar items in EconPapers)
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-02689-7_2

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DOI: 10.1057/9781137026897_2

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