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dc.contributor.authorFoote, Christopher L.en_US
dc.contributor.authorGerardi, Kristopher S.en_US
dc.contributor.authorWillen, Paul S.en_US
dc.date.accessioned2012-05-08en_US
dc.date.accessioned2012-06-20T16:09:42Z-
dc.date.available2012-06-20T16:09:42Z-
dc.date.issued2012en_US
dc.identifier.urihttp://hdl.handle.net/10419/59225-
dc.description.abstractThis paper presents 12 facts about the mortgage market. The authors argue that the facts refute the popular story that the crisis resulted from financial industry insiders deceiving uninformed mortgage borrowers and investors. Instead, they argue that borrowers and investors made decisions that were rational and logical given their ex post overly optimistic beliefs about house prices. The authors then show that neither institutional features of the mortgage market nor financial innovations are any more likely to explain those distorted beliefs than they are to explain the Dutch tulip bubble 400 years ago. Economists should acknowledge the limits of our understanding of asset price bubbles and design policies accordingly.en_US
dc.language.isoengen_US
dc.publisherFederal Reserve Bank of Boston Boston, MAen_US
dc.relation.ispartofseriesPublic policy Discussion Papers, Federal Reserve Bank of Boston 12-2en_US
dc.subject.jelD14en_US
dc.subject.jelD18en_US
dc.subject.jelD53en_US
dc.subject.jelD82en_US
dc.subject.jelG01en_US
dc.subject.jelG02en_US
dc.subject.jelG38en_US
dc.subject.ddc330en_US
dc.titleWhy did so many people make so many ex post bad decisions? The causes of the foreclosure crisisen_US
dc.typeWorking Paperen_US
dc.identifier.ppn715373455en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:Public Policy Discussion Papers, Federal Reserve Bank of Boston

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