Since early in 2007, the U.S. housing bubble has been deflating. Subprime lenders (those who lend to the riskiest, least-creditworthy debtors) have been especially hard-hit--with some of the largest lenders entering bankruptcy--and the stock of easy credit which fueled the housing boom is vanishing. The housing market's collapse has tightened credit worldwide, affecting liquidity, exchange rates, and raising fears of a global recession. AEI scholars, including Desmond Lachman, John H. Makin, and Alex J. Pollock, have been examining and analyzing the situation, offering insights on the source of the bubble, why it is bursting, the consequences for the U.S. and global economies, and what a proper government response would look like. As the year has progressed, their analysis has expanded to include the many areas affected by the housing bust. Below are links to relevant articles on the crisis, as well as related conferences on the subject.
"The Wrong Path to Sub-Prime Reform," By Desmond Lachman
Article on TCS Daily, November 8, 2007
"Deflating Housing Bubble II"
Conference, Thursday, October 11, 2007, 2:00-4:00 p.m.
Speakers: Desmond Lachman, John H. Makin, Alex J. Pollock, Nouriel Roubini, R. Christopher Whalen, and Thomas Zimmerman
"Subprime Superfund," by Peter J. Wallison
Article in the Wall Street Journal, October 18, 2007
"Wall Street's Housing Market Denial," by Desmond Lachman
Article in Gazeta Mercantil (Brazil), October 17, 2007
"Not (Yet) a 'Minsky Moment'," by Charles W. Calomiris
AEI paper, October 5, 2007
"Systemic Risk: Examining Regulators' Ability to React to Threats in the Financial System," by Alex J. Pollock
Testimony before the House Financial Services Committee, October 2, 2007
"Global Rebalancing," by John H. Makin
Economic Outlook, October 2007
"Credit Crunch: U.S. Social Investors Repeat Past Mistakes," by Jon Entine
Article in Ethical Corporation, October 2007
"The Subprime Mortgage Bust Goes Global," by Alex J. Pollock
Article in the International Union for Housing Finance Newsletter, October 2007
"Bust and Boom," by Kevin A. Hassett
Article in National Review, September 24, 2007
"Legislative and Regulatory Options Regarding Mortgage Foreclosures," by Alex J. Pollock
Testimony before the House Financial Services Committee, September 20, 2007
"Two Questions for Mr. Bernanke," by Desmond Lachman
Article in Gazeta Mercantil (Brazil), September 14, 2007
"Is Mr. Bernanke Correctly Gauging the Crisis?" by Desmond Lachman
Article in Les Echos (France), September 14, 2007
"Recession 2008?" by John H. Makin
Article in the Wall Street Journal, September 8, 2007
"Bubble Troubles Hint at Recession," by Desmond Lachman
Letter to the editor in the Financial Times, September 6, 2007
"A Buyer Beware Form for Mortgage Borrowers," by Alex J. Pollock
Letter to the editor in the Wall Street Journal, September 4, 2007
"Bush Hits Just Right Note in Facing Housing Mess," by Kevin A. Hassett
Article on Bloomberg.com, September 4, 2007
"Fine Line between Quick Fix and Calamity," by Desmond Lachman
Article in the Australian Financial Review, August 29, 2007
"Housing Market Crisis May Already Have Passed," by Kevin A. Hassett
Article on Bloomberg.com, August 27, 2007
"Can We Still Be So Sure There Will Be No Government Home Loans Bail-Out?" by Desmond Lachman
Letter to the editor in the Financial Times, August 10, 2007
"The U.S. Housing Bust Is a Big Deal," by Desmond Lachman
Article on TCS Daily, August 10, 2007
"Subprime Bust Expands," by Alex J. Pollock
Article on American.com, August 6, 2007
"Mortgage Madness," by Lawrence B. Lindsey
Article in the Wall Street Journal, August 3, 2007
"Subprime Blues Sound Familiar," by Desmond Lachman
Article in the Financial Times, August 2, 2007
"Analyze This: U.S. Housing Crisis Is Not Over," by Desmond Lachman
Article in the Australian Financial Review, July 26, 2007
"The Fed's Housing Bet," by Desmond Lachman
Article on TCS Daily, July 2, 2007
"U.S. Subprime Mortgages: Boom and Bust; Politics and Regulation," by Alex J. Pollock
Article in the International Union for Housing Finance Newsletter, June 2007
"Improving Mortgage Disclosure"
Conference, Friday, June 15, 2007, 9:00-11:00 a.m.
Speakers: John S. Allison, Christopher Cruise, Rep. Patrick McHenry (R-N.C.), Kurt Pfotenhauer, and Alex J. Pollock
"Avoiding the Next Subprime Lending Disaster"
AEI press release, June 13, 2007
"Clear and Practical Mortgage Disclosure," by Alex J. Pollock
Testimony before the Committee on Public Services and Consumer Affairs, June 8, 2007
"Bank Consolidation, Subprime Mortgage Issues, and the One-Page Mortgage Disclosure," by Alex J. Pollock
Testimony before the House Subcommittee on Domestic Policy, May 21, 2007
"To Make Mortgages Fair, Keep Disclosures To a Page," by Alex J. Pollock
Article on American.com, May 2, 2007
"After the Subprime Lending Bust," by Alex J. Pollock
On the Issues, May 2007
"A Proposal: The One-Page Mortgage Disclosure," by Alex J. Pollock
Article in NARLO Today, May 2007
"The Euro's Day of Reckoning," by Desmond Lachman
Article in Handelsblatt (Dusseldorf), April 30, 2007
"Prime Target," by Ted Frank
Article in the Wall Street Journal, April 25, 2007
"Housing Bubble Bursts into American Elections," by Desmond Lachman
Article in Financial Times, April 17, 2007
"Recession in 2007?" by John H. Makin
Economic Outlook, April 2007
"How Sharp Minds Got Lost in Subprime Bust," by Alex J. Pollock
Article in American Banker, March 30, 2007
"Mortgage Credit and Subprime Lending: Implications of a Deflating Bubble"
Conference, Wednesday, March 28, 2:00-4:00 p.m.
Speakers: Desmond Lachman, Alex J. Pollock, Nouriel Roubini, R. Christopher Whalen, and Thomas Zimmerman
"Subprime Mortgage Lending Problems in Context," by Alex J. Pollock
Testimony before the House Subcommittee on Financial Institutions and Consumer Credit, March 27, 2007
"Soft Pedaling the Housing Market Blues," by Desmond Lachman
Article on washingtonpost.com, March 26, 2007
"Housing Market Blues," by Desmond Lachman
Article on TCS Daily, March 23, 2007
"The Consequences of Subprime Turmoil," by Desmond Lachman
Letter to the editor in the Financial Times, March 20, 2007
"Subprime Mortgage Scandals and Lawsuits Are a Certainty," by Alex J. Pollock
Letter to the editor in the Financial Times, March 16, 2007
"Credit Crack-Up," by Alex J. Pollock
Article in the Wall Street Journal, March 12, 2007
"The Fed Is Not Asking the Right Questions," by Desmond Lachman
Article in the Australian Financial Review, March 9, 2007
"Subprime Time," by Alex J. Pollock
Article on American.com, March 8, 2007
"Risk and Return in Subprime Mortgages," by John H. Makin
Economic Outlook, March 2007
