Reading

The Basics of the Housing Bubble:

• Conway, Edmund. “Ninja’ loans explode on sub-prime frontline.” The Telegraph. March 3, 2008. http://www.telegraph.co.uk/finance/economics/2785403/Ninja-loans-explode-on-sub-prime-frontline.html.

• Duca, J., Muellbauer, J., and A. Murphy. 2011. “House Prices and Credit Constraints: Making Sense of the US Experience.” Economic Journal, Vol. 121 (552): 533-551.

• Klein, Alec and Zachary A. Goldfarb. "The Bubble." The Washington Post. June 15, 2008. http://www.washingtonpost.com/wp-dyn/content/article/2008/06/14/AR2008061401479.html.

Speculative Bubbles:

• These are some lecture notes on the asset pricing model from Peter Ireland in the Department of Economics at Boston College.

• Glaeser, Edward L, Joshua D Gottlieb, and Joseph Gyourko (2010), Can Cheap Credit Explain the Housing Bubble?”, NBER Working Paper 16230, July.

• McCarthy, J. and R. Peach. 2004. “Are Home Prices the Next Bubble.” Federal Reserve Bank of New York Economic Policy Review, 10(3): 1-17. http://www.newyorkfed.org/research/epr/04v10n3/0412mcca.html.

• Shiller, Robert. 3/2/08. “How a Bubble Stayed Under the Radar,” New York Times. http://www.nytimes.com/2008/03/02/business/02view.html?ex=1362114000&en=f450ee18dc5cde60&ei=5124&partner=permalink&exprod=permalink&_r=0.

The Role of Policy in the Housing Bubble:

• DiPasquale, D. 2011.“Rental Housing: Current Market Conditions and the Role of Federal Policy.”Cityscape: A Journal of Policy Development and Research, Vol. 13(2). http://www.huduser.org/portal/periodicals/cityscpe/vol13num2/Cityscape_July2011_rental_housing_1.pdf

• DiPasquale, D. and E,. Glaeser. 1999. “Incentives and Social Capital: Are Homeowners Better Citizens?” Journal of Urban Economics, Vol. 45: 354-384.

• Kiviat, B. (2010). The case against homeownership. Time, 40–46.

• Rudebusch, Glenn. 2009. “The Fed’s Monetary Policy Response to the Current Crisis.” Federal Reserve Bank of San Francisco Economic Letter, 2009-17. http://www.frbsf.org/economic-research/publications/economic-letter/2009/may/fed-monetary-policy-crisis/.

• Smith, R. (2012, October). A tax plan that economists love (and politicians hate). National Public Radio.

Housing and the Business Cycle:

• Leamer, Edward. 2007. “Housing is the Business Cycle.” Proceedings, Federal Reserve Bank of Kansas City, 149-233.

• Smets, Frank. “Commentary: Housing is the Business Cycle.” Proceedings, Federal Reserve Bank of Kansas City, 235-242. Link.

• “General Discussion: Housing is the Business Cycle.” Session chaired by Issing, O. Proceedings, Federal Reserve Bank of Kansas City, 245-251. Link.

Mortgage Backed Securities:

• He, J., Qian J., and P. Strahan, 2011. “Credit Ratings and the Evolution of the Mortgage-Backed Securities Market.” American Economic Review, Papers and Proceedings, Vol. 101:3, 131–135. Link.

• Michael Lewis, The Big Short: Inside the Doomsday Machine (New York: W. W. Norton & Company, Inc., 2010).

Credit Cycles:

• Bernanke, Ben. 1994. “The Macroeconomics of the Great Depression: A Comparative Approach.” Journal of Money, Credit and Banking, Vol. 27(1): 1-28. Link.

• Fisher, Irving. 1933. “The Debt-Deflation Theory of Great Depressions.” Econometrica, Vol. 1(4): 337-357. Link.

The Financial Panic of 2008:

• 9/10/09. “If Lehman had not Failed, would the crisis have happened anyway?” The Economist. http://www.economist.com/node/14401566.

• Gorton, Gary, and Andrew Metrick. 2012. “Getting Up to Speed on the Financial Crisis: A One-Weekend-Reader’s Guide.” Journal of Economic Literature, 50(1): 128-50.

• Mizen, Paul. 2008. “The Credit Crunch of 2007-2008: A Discussion of the Background, Market Reaction, and Policy Responses.” Federal Reserve Bank of St. Louis Review, 90(5), 531-67. http://research.stlouisfed.org/publications/review/article/6663.

• Paulson, Hank. September 12, 2013. “Hank Paulson: This is What it Was Like to Face the Financial Crisis.” Businessweek. http://www.businessweek.com/articles/2013-09-12/hank-paulson-this-is-what-it-was-like-to-face-the-financial-crisis#p1.

• “The Financial Crisis: A Timeline of Events and Policy Actions.” Federal Reserve Bank of St. Louis. Link.

  • Eavis, Peter and James B. Stewart. 9/29/14."Revisiting the Lehman Brothers Bailout That Never Was." The New York Times. http://www.nytimes.com/2014/09/30/business/revisiting-the-lehman-brothers-bailout-that-never-was.html?hp&action=click&pgtype=Homepage&version=LargeMediaHeadlineSum&module=photo-spot-region&region=top-news&WT.nav=top-news&_r=0.