Wall Street and the Housing Bubble

Ing-Haw Cheng, Sahil Raina and Wei Xiong

No 18904, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We analyze whether mid-level managers in securitized finance were aware of the housing bubble and a looming crisis in 2004-2006 using their personal home transaction data. To the extent that the practice of securitization may have led to lax screening of subprime borrowers, we find that the average person in our sample did not expect it to lead to problems in the wider housing market. Certain groups of securitization agents were particularly aggressive in increasing their exposure to housing during this period, suggesting the need to expand the incentives-based view of the crisis to incorporate a role for beliefs.

JEL-codes: G01 (search for similar items in EconPapers)
Date: 2013-03
New Economics Papers: this item is included in nep-ure
Note: AP CF ME
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

Published as Ing-Haw Cheng & Sahil Raina & Wei Xiong, 2014. "Wall Street and the Housing Bubble," American Economic Review, American Economic Association, vol. 104(9), pages 2797-2829, September.

Downloads: (external link)
http://www.nber.org/papers/w18904.pdf (application/pdf)

Related works:
Journal Article: Wall Street and the Housing Bubble (2014)
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:nbr:nberwo:18904

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w18904

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by (wpc@nber.org).