Book contents
- The Financial Crisis of 2008
- Studies in Macroeconomic History
- The Financial Crisis of 2008
- Copyright page
- Dedication
- Contents
- Introduction
- 1 The Heritage of the Hi-Tech Bubble 2000–2004
- 2 The Stretch for Higher Returns 2004–2006
- 3 The Impending Storm – 2007
- 4 The Crisis – 2008
- 5 What Caused the Crisis?
- 6 The Initial Obama Administration 2009
- 7 Recovery 2010–2012
- 8 Epilogue 2012–2016
- Acknowledgments
- Charts
- Tables
- Acronyms
- Bibliography
- Index
- Studies in Macroeconomic History
- Plate Section
4 - The Crisis – 2008
Published online by Cambridge University Press: 07 October 2021
Book contents
- The Financial Crisis of 2008
- Studies in Macroeconomic History
- The Financial Crisis of 2008
- Copyright page
- Dedication
- Contents
- Introduction
- 1 The Heritage of the Hi-Tech Bubble 2000–2004
- 2 The Stretch for Higher Returns 2004–2006
- 3 The Impending Storm – 2007
- 4 The Crisis – 2008
- 5 What Caused the Crisis?
- 6 The Initial Obama Administration 2009
- 7 Recovery 2010–2012
- 8 Epilogue 2012–2016
- Acknowledgments
- Charts
- Tables
- Acronyms
- Bibliography
- Index
- Studies in Macroeconomic History
- Plate Section
Summary
Housing problems escalated in the first half of 2008. The decline in prices that began in 2007 accelerated to over 5% nationally in mid-2008 (Chart 4.1). Housing prices in the exuberant markets of Los Angeles, Las Vegas, Miami, and Phoenix dropped 20–30% (Chart 4.2). The ABX AAA 2006–2 index (for subprime mortgages originated in the first half of 2006) was down 20% and ABX AAA 2007–2 (mortgages originated in the first half of 2007) was down 60% (Chart 4.3).
- Type
- Chapter
- Information
- The Financial Crisis of 2008A History of US Financial Markets 2000–2012, pp. 154 - 220Publisher: Cambridge University PressPrint publication year: 2021