Risk run amok: what happens to housing when greed and failed policy collide
Harvard's Joint Center for Housing Studies this morning releases a report for those who admit they don't know what they don't know about the meltdown. One of its authors, Eric S. Belsky, managing director at JCHS, says, "The combination of a glut of global liquidity, low interest rates, high leverage, and regulatory laxity in the context of initially tight and then overvalued housing markets triggered staggering risk taking. Capital markets supplied credit through Wall Street in large volumes for risky loans to risky borrowers and then multiplied these risks by issuing derivatives that exposed investors to risks in amounts much larger than the face amount of all the loans." A tad academic, but not moot. Continued Here: http://www.builderonline.com/builder-pulse/risk-run-amok-what-happens-to-housing-when-greed-and-failed-policy-collide.aspx?cid=NWBD100924002
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Scott's Contracting
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