"The U.S. housing GSEs and their low-income credit mandates exerted a larger influence on the subprime mortgage market than was known ex ante."
"Perhaps most importantly, the magnitude of the overinvestment in housing collectively generated by these sources of moral hazard was underestimated and emerged only gradually as the fall in residential investment unfolded."
Sunday, January 30, 2011
Federal Reserve Bank Of Richmond Lacker On The Financial Crisis
See Reflections on Economics, Policy and the Financial Crisis by Jeffrey M. Lacker. Excerpts:
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.