Currently viewing the tag: "Housing Crisis"
Ben Bernanke has claimed no responsibility for the housing crisis and has instead put the blame on failing to regulate real estate lending. In 2003, interest rates were cut to 1% and kept there for over a year. Artificially low interest rates, however, led to excessive speculation.
Aaron Task stated that there was not [...]
The efficient market hypothesis – the notion that markets always reflect an equilibrium was proven incorrect in real estate markets during the bubble. Real estate prices traditionally were a reflection of the local economy. If the economy was strong, prices would generally rise until more homes were built. Then, they would level off as supply [...]
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