Booms and Busts: the Case of Subprime Mortgages A Reprint from the ¿Economic Review¿ |
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Author:
| Gramlich, Edward M. |
ISBN: | 978-1-4289-8892-7 |
Publication Date: | May 2008 |
Publisher: | DIANE Publishing Company
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Book Format: | Paperback |
List Price: | USD $10.00 |
Book Description:
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Booms & busts have played a prominent role in Amer. economic history. In the 19th cent., the U.S. benefited from the canal boom, the railroad boom, the minerals boom, & a financial boom. The 20th cent. brought another financial boom, a postwar boom, & a dot-com boom. Each of these cases featured initial discoveries or breakthroughs, widespread adoption, widespread investment, & then a collapse & many investors lost a lot of money. When the dust cleared, there was financial carnage &...
More DescriptionBooms & busts have played a prominent role in Amer. economic history. In the 19th cent., the U.S. benefited from the canal boom, the railroad boom, the minerals boom, & a financial boom. The 20th cent. brought another financial boom, a postwar boom, & a dot-com boom. Each of these cases featured initial discoveries or breakthroughs, widespread adoption, widespread investment, & then a collapse & many investors lost a lot of money. When the dust cleared, there was financial carnage & many investors learned to be more careful the next time. This article describes why the subprime lending market, despite its problems, is a promising development that has permitted low-income & minority borrowers to participate in credit markets.