Midsummer Meltdown: Prospects for the Stock and Housing Markets


 

Publication Date:

Publisher: Center for Economic and Policy Research

Author(s): Dean Baker

Research Area: Economics

Keywords: Housing market; Recession; Home ownership

Type: Report

Coverage: United States

Abstract:

This paper examines the factors that have led to the recent instability in financial markets, specifically the housing bubble and the recent run-up in stock prices. Prices in both the housing market and the stock market are often moved by psychological factors that have little to do with fundamentals.