Follow-Up Analysis Shows How Stakeholders Portrayed the Origins of the Financial Crisis I. Introduction In this analysis, we apply the same analytical approach, described in our first post in this series, to the question of how interviewees explained the causes of the Global Financial Crisis. The analytical approach uses our growing database of 40+ interviews Continue Reading »
Novel Analysis Shows How Stakeholders Considered Certain Features of the Financial Crisis I. Introduction Our analysis displays how three sets of stakeholders – government policymakers, consumer advocates, and banking executives – spoke about aspects of the financial crisis. The data come from a set of over 40 interviews that our team has conducted with individuals Continue Reading »
By Jett Hollister This is part of a series. Click here to read the previous article. Technical explanations of procedures contained in this analysis can be viewed here. To examine the differences in sentiment between blogs, we started by gaining a deeper understanding of Calculated Risk and Grasping Reality, the two blogs that behaved most similarly. Continue Reading »
By Jett Hollister Technical explanations of procedures contained in this analysis can be viewed here. During the leadup to the collapse of the U.S. housing market, few economic forecasts identified the growing imbalances in the American economy. Before the fire sale of Bear Stearns, collapse of Lehman Brothers, and failing subprime mortgage investments rippled throughout Continue Reading »
By Despina Chouliara The Great Recession began in December 2007 and ended in June 2009, making it the longest recession in the U.S. since the Great Depression. The crisis led to steep reductions in GDP, gross private investment, and personal consumption. Consumer spending experienced the most severe decline since World War II, and nearly 8.7 Continue Reading »
By Despina Chouliara The Global Financial Crisis was caused by a housing bubble that deflated rapidly. Using data from Moody’s Analytics, Freddie Mac, Yahoo Finance and the Federal Reserve, we created visualizations that highlight the evolution of the housing market in the United States and North Carolina in the ten years preceding the onset of Continue Reading »
By Justina Zou A description of the data can be found under data descriptions. To prevent predatory lending practices, protect homeowners, and establish a hierarchy of transparency and accountability, the North Carolina General Assembly enacted the Mortgage Lending Act (MLA) in 2001. This law set new licensing requirements for mortgage bankers, mortgage brokers, and mortgage Continue Reading »
By Cameron Polo *This is part of a series. Click here to read the previous article.* In a previous article, we analyzed the trend in North Carolina delinquency rates for prime and subprime mortgage loans leading up to the 2007-09 Global Financial Crisis. We now turn our attention to the performance of fixed-rate versus adjustable-rate Continue Reading »
By Cameron Polo *This is part of a series. Click here to read the previous article.* Delinquency rates provide important insights into the causes, and the severity, of the 2007-09 Global Financial Crisis (a borrower is delinquent when they are behind on one or more monthly mortgage payments). As the graph below highlights, there were Continue Reading »
By Cameron Polo The role individual homeowners played in contributing to the Global Financial Crisis of 2007-09 is often measured by the number of defaults and foreclosures. While many Americans did lose their home – and these stories garnered significant media coverage – a more accurate assessment of how homeowners influenced the crisis can be Continue Reading »
by Arjun Bakshi, William Zhao Fueled by investment property buyers in Las Vegas, the housing bubble in Nevada was pronounced. When the bubble burst, the pain was widely felt. The following are the key findings from our analysis of Nevada housing data. Finding 1: Nevada had a significant housing bubble. When it popped, home prices Continue Reading »
by Arjun Bakshi, William Zhao Our exploration of Massachusetts mortgage market data in the run up to the financial crisis provides four key findings. Finding 1: Massachusetts’ housing bubble was more modest compared to other states Figure 1 shows how home prices in Massachusetts rose at a more moderate pace compared to Arizona and Florida. Continue Reading »
by William Zhao, Arjun Bakshi In this report, we list seven key findings from our exploration of the mortgage market between 2000 and 2009 in Ohio. Although Ohio was relatively less affected by the housing bubble, our analysis points towards the existence of predatory behavior by mortgage lenders leading up to the crisis in Ohio. Continue Reading »
by William Zhao, Arjun Bakshi A Sun Belt state with a population that is one-third African American, Georgia was targeted by unscrupulous mortgage lenders during the 1990s and 2000s. When the housing bubble burst, all borrowers faced difficult circumstances and defaults skyrocketed . Below are six findings from our exploration of housing market data in Continue Reading »
by William Zhao, Arjun Bakshi The housing bubble in Florida was quite pronounced – likely due to the prominence of investors who bought second homes in the state – which accentuated the downturn when the national market collapsed. As a result defaults in Florida exceeded the national average and the default rate in other states Continue Reading »
by Arjun Bakshi, William Zhao Our 5 key findings reveal how Arizona was one of the worst affected states when the housing bubble burst. When the crash occurred in 2008, the data shows steep drop-offs in almost every mortgage metric, including average applicant income, average loan amount, and the number of conventional loans issued. Finding Continue Reading »
