Posts in category "Financial crisis"

Slim Chance Of A Housing Bubble In The Chicago Area

Slim Chance Of A Housing Bubble In The Chicago Area
I was tempted to say that there is no chance of the Chicago area currently being in a bubble but the fact is that just about anything is possible so I settled for “slim chance”. As Robert Shiller (of Case Shiller Home Price Index fame) said in a recent interview “There’s always reason to worry... Read more »

Price Point Mattered In The History Of Chicago's Housing Bubble

Price Point Mattered In The History Of Chicago's Housing Bubble
This was originally going to be a quick and easy blog post about how the upper end of the Chicago housing market was on a tear and growing faster than any other segment. But then the data wasn’t exactly cooperating with my preconceived notion and it became clear that there was actually a very different... Read more »

Housing Bubble 2.0: Predatory Lending Is Back

Housing Bubble 2.0: Predatory Lending Is Back
The popular narrative about the financial crisis/ housing bubble is that predatory lending practices tricked unsuspecting consumers into buying homes they couldn’t afford, driving up home prices to unsustainable levels in the process. Then when home prices inevitably went down the lenders took homes away from these people, making billions of dollars in exorbitant profits... Read more »
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Are We Heading Towards Another Mortgage Crisis?

Are We Heading Towards Another Mortgage Crisis?
Tuesday night I saw the trailer for The Big Short, which is based upon the book about John Paulson who made close to $4 B on the mortgage crisis by buying insurance contracts on subprime mortgages. It looks like it’s going to be a great movie and I loved how they used Led Zeppelin’s When... Read more »

Should You Really Feel Good About The JP Morgan Mortgage Settlement?

Should You Really Feel Good About The JP Morgan Mortgage Settlement?
13 months ago the newly formed┬áResidential Mortgage-Backed Securities Working Group sued JP Morgan for their contributions to the financial crisis through their mortgage activities. Yesterday the two parties reached a $13 Billion settlement which includes $9 billion in restitution and $4 billion in help for homeowners and communities impacted by high foreclosure rates. Clearly this... Read more »

How Politics And The Government Caused The Financial Crisis

How Politics And The Government Caused The Financial Crisis
As you know it’s very fashionable to lay the blame for the financial crisis on greedy Wall Streeters (especially if you are a politician or work in Hollywood or spend your days occupying something) but as I’ve pointed out in the past the government is largely to blame for the mortgage crisis. It just never... Read more »
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21 Books That Don't Know What Caused The Financial Crisis

21 Books That Don't Know What Caused The Financial Crisis
If someone tells you they know what caused the financial crisis – especially if they are from Hollywood and/or wear a baseball cap – don’t believe them. Andrew Lo, a finance professor at the MIT Sloan business school, wrote a review of 21 books on the financial crisis and concluded that we can’t even agree... Read more »