Abstract

http://ssrn.com/abstract=2232233
 
 

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Citations (4)



 


 



Wall Street and the Housing Bubble


Ing-Haw Cheng


Dartmouth College - Tuck School of Business

Sahil Raina


University of Michigan at Ann Arbor - Finance

Wei Xiong


Princeton University - Department of Economics; National Bureau of Economic Research (NBER)

January 27, 2014


Abstract:     
We analyze whether mid-level managers in securitized finance were aware of a large-scale housing bubble and a looming crisis in 2004-2006 using their personal home transaction data. We find that the average person in our sample neither timed the market nor were cautious in their home transactions, and did not exhibit awareness of problems in overall housing markets. Certain groups of securitization agents were particularly aggressive in increasing their exposure to housing during this period, suggesting the need to expand the incentives-based view of the crisis to incorporate a role for beliefs.

Number of Pages in PDF File: 44

Keywords: securitization, housing bubble, beliefs

JEL Classification: G01, G20, G21, G23, G24

working papers series


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Date posted: March 12, 2013 ; Last revised: January 28, 2014

Suggested Citation

Cheng, Ing-Haw and Raina, Sahil and Xiong, Wei, Wall Street and the Housing Bubble (January 27, 2014). Available at SSRN: http://ssrn.com/abstract=2232233 or http://dx.doi.org/10.2139/ssrn.2232233

Contact Information

Ing-Haw Cheng (Contact Author)
Dartmouth College - Tuck School of Business ( email )
Hanover, NH 03755
United States
Sahil Raina
University of Michigan at Ann Arbor - Finance ( email )
701 Tappan Street
Ann Arbor, MI 48109-1234
United States
Wei Xiong
Princeton University - Department of Economics ( email )
Princeton, NJ 08544-1021
United States

National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
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