Great American Housing Bubble

Adam Levitin and Susan Wachter argue that the housing bubble of the 2000s was caused by private-label securitization. Competition among Wall Street banks set off a race to the bottom in mortgage underwriting that inflated home prices but yielded huge profits before the bubble burst. To avoid déjà vu, w¬e need carefully regulated securitization.

Adam Levitin si Susan Wachter sustin ca balonul imobiliar din anii 2000 a fost cauzat de securitizarea cu marca privata. Concurenta dintre bancile de pe Wall Street a declansat o cursa pana la partea de jos a subscrierii ipotecare care a umflat preturile locuintelor, dar a obtinut profituri uriase inainte de explozia bulei.