1. Economic Price Bubbles
What methods have economists and real estate analysts used to determine the presence of housing bubbles and what are the shortcomings of those methods? ... Courtois so elegantly states, "Housing prices soared, and securities backed by risky subprime mortgages were sold throughout the financial system at prices thatdidn't reflect their true risk.... "8 To further reinforce this point Gerardi et al. undertook a review of the real-time beliefs of many preeminent economists and real estate analysts during the most recent housing bubble. ... Courtois suggests that policy makers woul...
- Word Count: 951
- Approx Pages: 4
- Grade Level: Undergraduate