This is a plain English explanation of how we got into the current economic disaster that developed out of the economics and politics of the housing boom and bust The creative financing of home mortgages and the even creative marketing of financial securities based on American mortgages to countries around the world, are part of the story of how a financial house of cards was built upand then suddenly collapsed.The politics behind all this is another story full of strange twists No punches are pulled when discussing politicians of either party, the financial dangers they created, or the distractions they created later to escape their own responsibility for what happened when the financial house of cards in the financial markets collapsed.What to do, now that we are in the midst of an economic disaster, is yet another storyone whose ending we do not yet know, but one whose outlines and implications are explored to reveal some surprising and sobering lessons....
|Title||:||The Housing Boom and Bust|
|Publisher||:||Basic Books 1 edition April 24, 2009|
|Number of Pages||:||192 pages|
|File Size||:||787 KB|
|Status||:||Available For Download|
|Last checked||:||21 Minutes ago!|
The Housing Boom and Bust Reviews
This superb analysis of the causes of the current financial crisis should be required reading for every American who considers himself well informed. In a straightforward style, economist Sowell lays out step by step how we find ourselves in today's economic collapse including, governmental restrictive land use policies which led to skyrocketing prices for houses in certain select areas of the country, political pressure on banks to lend to those who could not normally qualify for mortgages, the press for 'creative' financing in order to ensure a policy of affordable housing for all, real estate speculation, 'creative' accounting practices and the failure of credit rating agencies to assess the risk of subprime backed securities.
As always, Thomas Sowell explains the housing crisis clearly and understandably. If not for the government pressure on lenders, the housing crisis would never have occurred. What government actions caused the housing crisis?
I'm an economics professor and used this book in a course for non-econ majors about the economic crisis. Most of these students were 18 yrs old and never had any econ course before. Judging from the excellent class discussions we had about each chapter and their performance on the exams, it is clear that the book really engaged these students and they really learned a LOT from it.
Dr. Sowell has once again brought sold facts and clear thinking to what many consider to be a subject too complicated for ordinary mortals and therefore should be left to the anointed experts in government. He breaks the housing collapse down into actions and consequences, chronicling the misguided government intervention into the free market of mortgage lending that then led directly to the "toxic assets" the government later complained about having to fix with the massive TARP expenditure. It's amazing how they blame free market banks for trying to survive under oppressive conditions imposed by government. Bureaucrats should be judged on their adherence to liberty, the free market, and the Constitution to ensure that we are protected from similar disasters.