Great Recession Causes and Case Shiller as Explained by Marcus Nunes

This article was first published by me on Talkmarkets: http://www.talkmarkets.com/content/bonds/great-recession-causes-and-case-shiller-as-explained-by-marcus-nunes?post=99707&uid=4798
Before ending with ideas offered by Marcus Nunes, it is helpful to explain Case-Shiller. The leading indicator of the housing crash was the Case-Shiller Home Price Index, abbreviated C-S HPI. It is a 20 city measurement of house prices. The leading indicator of the housing crash was in serious decline prior to the subprime housing crisis of August, 2007. The subprime crash of August was brought into being when the commercial paper market was destroyed, commercial banks were forced to take back loans hidden in SIVs, and subprime loans went away completely.
The banks could have solved at least part of this problem prior to the August crisis, with starter loans for first time buyers, who were either priced out of the market or forced to take subprime mortgages. Starter loans for first time buyers wou…
Before ending with ideas offered by Marcus Nunes, it is helpful to explain Case-Shiller. The leading indicator of the housing crash was the Case-Shiller Home Price Index, abbreviated C-S HPI. It is a 20 city measurement of house prices. The leading indicator of the housing crash was in serious decline prior to the subprime housing crisis of August, 2007. The subprime crash of August was brought into being when the commercial paper market was destroyed, commercial banks were forced to take back loans hidden in SIVs, and subprime loans went away completely.
The banks could have solved at least part of this problem prior to the August crisis, with starter loans for first time buyers, who were either priced out of the market or forced to take subprime mortgages. Starter loans for first time buyers wou…