Most significantly, we find evidence that the changing credit regime that took place in late 2003, as the GSE’s pulled back from the market for political, regulatory, and market-based reasons [Curious Capitalist notes: they're talking about accounting scandals, caps on retained loans, etc.], is suggested to be a primary factor reducing the dominance of market fundamentals in affecting house price returns and creating the price-momentum conditions characteristic of a “bubble”. Rather than causing the run-up in house prices, the subprime market may well have been a joint product, along with house price increases, (i.e., the “tail”) of the economic, political, and regulatory environment characteristic of the early- to mid-2000’s (the “dog”).
Antitrust at the Agencies: Happy New Year 5786 Edition
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It’s the beginning of a new year for some of us, so let me wish all of you
a good year, and a sweet year, even if you don’t know what I’m talking
about. ...
4 hours ago
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