Thoma: "Here's what really caused the housing crisis"

An excellent overview from Professor Mark Thoma: Here's what really caused the housing crisis . Excerpt: As the author of the research , Antoinette Schoar, explained in an interview: "A lot of the narrative of the financial crisis has been that this [loan] origination process was broken, and therefore a lot of marginal and unsustainable borrowers got access to funding. In our opinion, the facts don't line up with this narrative. … Calling this crisis a subprime crisis is a misnomer. In fact, it was a prime crisis." When analysts were calling it a "subprime crisis", my former co-blogger Tanta......(read more)

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