Updated about 15 years ago on . Most recent reply
Interesting Specific Data
I'm reading a book about Ben Bernanke and how the Fed handled the economy since he became Chairman in early 2006.
One chapter covering a general overview of the meltdown gives specific data on risky mortgage originations.
Low quality originations (subprime & Alt-A) increased from 7% of originations in 2001 to 33% in 2006.
IO and neg-am loans jumped from 1% of total originations in 2001 to 29% in 2005. (stayed above 25% for 2004-2006).
Any wonder we had a meltdown?
Original authors Martin Bailey, Douglas Elmendorf and Robert Litan (May 2008) The Great Credit Squeeze: How It Happened, How to Prevent Another Economics Studies at Brookings, Washington.