Covering a housing or banking story today? Here’s the latest from the experts on the AEI financial services team.
Today’s housing policies are not helping anyone. Without a few common-sense policy shifts, we are only setting ourselves up for more leverage-driven house price appreciation and greater housing risk.
Using new property-level data, the authors find that the change in the land share of house value during the boom was a significant predictor of the decline in house prices during the bust, highlighting the value of focusing on land in assessing house-price risk.
The Fed of 2008 feared inflation too much and recession too little. It placed too little weight on market expectations about future conditions and on how its behavior affected those expectations. If these mistakes go unrecognized, they could well be repeated.
Fueled by historically low mortgage rates and high and growing leverage, a seller’s market has now prevailed for 40 straight months.
We often think there are only two ways to fight poverty — the government and private philanthropy. But living arrangements can be just as important.
On a year-over-year basis, first-time buyer demand increased in December.
Increasing leverage is the snake in the housing finance Garden of Eden. It is a constant set of alluring temptations to enjoy the fruit of increased risk in the medium term, while setting ourselves up for the inevitable fall.
The left’s narrative about the financial crisis is seductive and easy to portray in a Hollywood film. But the facts are notably absent.
Government blunders turned it into a financial crisis. But this is not the kind of story that Hollywood likes—no greed, no evildoers, not even any humor—just very bad government policy combined with serial government blunders. Hence, “The Big Short” is solely entertainment, not the truth.