The Housing Bubble and the Financial Crisis

Publication Date:

Publisher: Center for Economic and Policy Research

Author(s): Dean Baker

Research Area: Banking and finance

Keywords: Subprime mortgages; Housing market; Personal loans

Type: Report

Coverage: United States

Abstract:

Dean Baker first describes the circumstances under which the bubble began to grow. He then discusses how financial innovations and the lack of a proper regulatory structure allowed the bubble to grow to ever more dangerous levels and eventually crash in a way that has placed unprecedented strain on the country's financial system. The third part outlines key principles for reform of the financial system.