This is the eBook version of the printed book.
This Element is an excerpt from Financing the Future: Market-Based Innovations for Growth (9780137011278) by Franklin Allen and Glenn Yago. Available in print and digital formats.
How the housing bubble really happened: an explanation that’s simple, clear, sensible, authoritative, and short!
The genesis of the housing bubble emerged from the ashes of the dot-com bust. To alleviate the downturn, the Federal Reserve drastically reduced interest rates, and the era of easy credit was under way. Other nations with massive foreign reserves were drawn to invest in the U.S., and, with Treasuries offering only meager returns, they began to eye mortgage-backed securities as a “safe” vehicle offering higher yields....
About the Author
Franklin Allen is Nippon Life Professor of Finance and Professor of Economics, The Wharton School, University of Pennsylvania, and Co-Director of the Wharton Financial Institutions Center. He is past President of several leading industry organizations, including the American Finance Association and the Society for Financial Studies. Glenn Yago, Director of Capital Studies at the Milken Institute, is an authority on financial innovation, capital markets, emerging markets, and environmental finance. His work has contributed to the democratization of capital in underserved markets and on behalf of entrepreneurs in the U.S. and around the world.