The Housing Boom and Bust

The Housing Boom and Bust By Thomas Sowell, The Housing Boom and Bust This is a plain English explanation of how we got into the current economic disaster that developed out of the economics and politics of the housing boom and bust The creative financing of home mortga
  • Title: The Housing Boom and Bust
  • Author: Thomas Sowell
  • ISBN: 9780465018802
  • Page: 186
  • Format: Hardcover
  • The Housing Boom and Bust By Thomas Sowell, This is a plain English explanation of how we got into the current economic disaster that developed out of the economics and politics of the housing boom and bust The creative financing of home mortgages and the even creative marketing of financial securities based on American mortgages to countries around the world, are part of the story of how a financial houseThis is a plain English explanation of how we got into the current economic disaster that developed out of the economics and politics of the housing boom and bust The creative financing of home mortgages and the even creative marketing of financial securities based on American mortgages to countries around the world, are part of the story of how a financial house of cards was built up and then suddenly collapsed.The politics behind all this is another story full of strange twists No punches are pulled when discussing politicians of either party, the financial dangers they created, or the distractions they created later to escape their own responsibility for what happened when the financial house of cards in the financial markets collapsed.What to do, now that we are in the midst of an economic disaster, is yet another story one whose ending we do not yet know, but one whose outlines and implications are explored to reveal some surprising and sobering lessons.
    The Housing Boom and Bust By Thomas Sowell,
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      186 Thomas Sowell
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      Published :2020-04-21T08:55:56+00:00

    About "Thomas Sowell"

    1. Thomas Sowell

      Thomas Sowell is an American economist, social commentator, and author of dozens of books He often writes from an economically laissez faire perspective He is currently a senior fellow of the Hoover Institution at Stanford University In 1990, he won the Francis Boyer Award, presented by the American Enterprise Institute In 2002 he was awarded the National Humanities Medal for prolific scholarship melding history, economics, and political science.Sowell was born in North Carolina, where, he recounted in his autobiography, A Personal Odyssey, his encounters with Caucasians were so limited he didn t believe that yellow was a hair color He moved to Harlem, New York City with his mother s sister whom he believed was his mother his father had died before he was born Sowell went to Stuyvesant High School, but dropped out at 17 because of financial difficulties and a deteriorating home environment He worked at various jobs to support himself, including in a machine shop and as a delivery man for Western Union He applied to enter the Civil Service and was eventually accepted, moving to Washington DC He was drafted in 1951, during the Korean War, and assigned to the US Marine Corps Due to prior experience in photography, he worked in a photography unit.After his discharge, Sowell passed the GED examination and enrolled at Howard University He transfered to Harvard University, where he graduated magna cum laude with a Bachelor of Arts degree in Economics He received a Master of Arts in Economics from Columbia University, and a Doctor of Philosophy in Economics from the University of Chicago Sowell initially chose Columbia University because he wanted to study under George Stigler After arriving at Columbia and learning that Stigler had moved to Chicago, he followed him there.Sowell has taught Economics at Howard University, Cornell University, Brandeis University, and UCLA Since 1980 he has been a Senior Fellow of the Hoover Institution at Stanford University, where he holds a fellowship named after Rose and Milton Friedman.

    919 thoughts on “The Housing Boom and Bust”

    1. Sowell s The Housing Boom and Bust is a thorough and scathing analysis of government interference in the housing and lending market, from land use restrictions to the corrupt influence of Congress over federal regulators to the Community Reinvestment Act to the artificially low interest rates of the Federal Reserve Sowell convincingly demonstrates that ever increasing levels of government meddling converted the US home mortgage market which had been the most reliably profitable business anywhere [...]


    2. As he always does, Dr Sowell has written the most straight forward, well researched, and honest explanation for the housing and financial situation that we find ourselves in I work in the mortgage industry and being an economics student, I have found myself reading many books and articles on this subject This one is by far the best read for an expert and the layman, which would be someone who doesnt fully grasp MBS s and the many new financial instruments that use mortgages as collateral The int [...]


    3. In his latest effort, Thomas Sowell outlines the origins of the American housing boom and bust in the first decade of the new millennium The current economic downturn began with the decline in real estate prices and the increase in payment delinquencies and foreclosures Few people understand the details behind this real estate collapse, which led to a consumption slowdown, which led to the stock market collapse and relatively high unemployment Sowell draws on his economic background, conservativ [...]


    4. I chose this as a book about money or finance for the 2018 Challies Challenge and was a little surprised that I found it so interesting I remember my dad s concern about making house payments in the 1970 s I remember being a newlywed in the 1980 s and wondering how we would ever afford a house I was certainly aware of the housing bust that is the subject of this book Mr Sowell provides a clear explanation of the factors involved, and he makes a convincing argument that government regulation inte [...]


    5. Have you ever talked with a stranger about relationships Sometimes a normal conversation turns into a diatribe about the stranger s recent divorce and how all relationships are a sham As you awkwardly pull away, they grab your elbow and plead, spittle landing on your arm, Promise me you ll never marry PROMISE That s what it felt like to read this book I wanted to learn about the housing boom and bust of the 2000s, as part of a larger attempt to understand what it means to own real estate, hopin [...]


    6. Thomas Sowell s book, The Housing Boom and Bust, explores the economics behind the many causes of the recent housing bust In essence, it s an accurate account of how we all participated in the housing crisis Lenders, government entities Fannie Mae and Freddie Mac, builders, local government regulations, local homeowners, government regulators HUD and bank authorities , the Congress, and presidents each played a part Sowell rightly points out that the crisis was namely a result of misinformed pol [...]


    7. The Housing Boom and Bust is a useful and simple look into the financial crisis of 2008 09 by the great Thomas Sowell Sitting at about 200 pages, Sowell does not go through the same talk of complex derivatives and securities and greedy bank on which many other accounts choose to place much of the blame Yes, mortgage backed securities and collateralized debt obligations contributed to the financial crisis, but what led banks down this path Did banks somehow get greedier from 2004 to 2006 Or did t [...]


    8. Bleh Over simplified and clearly slanted My favorite was the blatantly racist message that part of the bust was because we lent to too many minorities, and it s proven fact that minorities have worse credit, and don t take care of property Also, didn t you know that people bring their slums with them If you give them a nice house, they ll just trash it like they do to their slum rentals Almost no attention was paid to the sub prime mortgage market, because, you know these securities would have r [...]


    9. Easy to read, and as usual with Sowell, amazingly illuminating Sowell convincingly answers many questions Here are just a few The fact that there was no single cause made it easy to pass blame around Reselling loans to places like Freddie and Fannie gives the initial lender fewer incentives to check closely into borrower qualifications The assumption, proven correct that the government would bail out Freddie and Fannie if they got into trouble meant that bank profit remain privatized while risk [...]


    10. The housing market is greatly affected by interest rates and credit eligibility rules p.2 While the individual home buyer may deal solely with a bank that provides the money to buy the house, in exchange for a mortgage to be paid off in monthly installments, behind that bank and over the bank are all sorts of other institutions,whose actions affect or control the housing markets The Federal Reserve System regulates many across the country, and also has the power to take actions which affect inte [...]


    11. I agree with almost everything Thomas Sowell says in this book about the role the government played in the run up of prices and the unsustainable mortgage frenzy that eventually had no option but to collapse.But as with most writers on this subject, Sowell is so focused on the one issue that he fails to see a few important points.The first is that The Government did not force banks to make bad loans Yes, government policies put tremendous pressure on chartered banks to lower lending standards, b [...]


    12. I ve not had a sure sense of what made the financial crisis happen I ve read news accounts, and was vaguely aware of what was a kind of mass mania in the financial markets But what under girded this mania is what Thomas Sowell details in economical prose, competently marshaled facts, and concise and plainly written explanations of key economic indicators Sowell s thesis is this Government policy was the cause of the housing bust Specifically, its implicit guarantee of Freddie Mac and Fannie Mae [...]


    13. I was driving from Ohio to Utah with my conservative Mormon friend and he asked if we could put on this book I agreed because I once made a deal with him to read the Book of Mormon if he read People s History of the United States, he finished Zinn while I only got about 3 4 through Book of Mormon, so I figured I owed him some book time I wasn t very familiar with Sowell, and I ll at least grant him he ties his ideology to stronger research than paranoid such as bloviators Hannity, Beck and Limba [...]


    14. A short, focussed inquiry into the causes of the financial crisis of 2008 And the causes are not what we ve generally been told Since housing was at the core of the crisis, changes in housing policy under several administrations set the industry up for a catastrophic collapse when neared pulled the entire financial system down with it Some specific problems Land use laws that drove up housing prices The affordable housing campaign that did attempted to counter high prices by government intervent [...]


    15. Sowell s arguments are complex than this, but if you want the general idea of the book, here it is Housing became unaffordable in many cities due to laws that restricted land use and sale Fewer people could afford the expensive homes so government, to promote higher home ownership and end ostensibly racist lending practices, imposed regulations that encouraged, and in some cases, forced lenders to offer loans to under qualified applicants People who couldn t otherwise afford to buy homes took [...]


    16. A quick and easy read for anyone wanting to understand how we got into the current economic mess we have all been affected by Not need to have a prior understanding of economics My favorite passage from the book Despite differences of personalities and of the times, the underlying vision of the New Deal and that of the current administration are fundamentally similar However that vision is conceived or articulated by those who believe in it, it is a vision of the federal government exercising va [...]


    17. While I agree with many of Sowell s assertions in regards to systemic problems in the housing market, his bias clearly shows as he somehow manages to portray Wall Street and the bankers as innocent victims of government tyranny I won t dispute that government has culpability in the problem but please act as if private greed didn t play any role is simply ridiculous Further, he is convenient in his arguments regarding land use restriction He is accurate that restrictions impact housing prices How [...]


    18. Currently reading It s extremely clear and well written, and the research and evidence presented all appear air tight on first reading But if you know this guy, you know what side of the fence he s going to come down on, and it s the side of government is bad the market is good Bringing this expectation to the reading, most of the arguments come across as canned, predictable, and a little bit boring When Sowell starts talking about the elite, for instance, I can t help but roll my eyes.Still, if [...]


    19. A short er book, but so poignant Sowell gives good evidence that the cause of the housing boom was the unnatural restriction of land which jacked prices up in key geographical areas like coastal california Then, politicians required loan quotas to minority applicants thus forcing banks to loan to people who would likely default on their loan The whole discussion of what caused the boom and the bust is great, but Sowell also talks about the New Deal by FDR and how the Obama administration follow [...]


    20. This was my third Thomas Sowell book and I loved it This book goes where The Big Short left off Namely that it wasn t so much Wall st and the banks that were to blame for the 2008 financial recession housing crisis but rather the government who were incentivizing, enabling and actually bullying banks to participate in really damaging economic policies Sowell goes so far as to say that there was an even sinister motive of the government rushing certain policies ahead even if they wouldn t be imm [...]


    21. Despite working at a mortgage hedge fund and having some understanding of how mortgage derivatives work, I had never had a clear understanding of what caused the housing boom, how the proliferation in mortgage products started, how the housing boom went bust, and how the housing bust spread over into the general economy True to its title, this book talks about the housing boom and housing bust, and not much else.The Housing Boom and Bustmakes clear that, at least in the U.S housing is an inheren [...]


    22. With characteristic conciseness and cold rationality, Sowell lays bare the varied factors that led to the most recent financial crisis In doing so, he excoriates the American federal government s economically irrational decisions that distorted market conditions and incentivized the Great Recession In this, Sowell maintains a tone of dispassionate professionalism He need not add any tone of rage his thorough analysis alone carries the seething contempt he possesses toward politicians that enact [...]


    23. Should be required reading in every high school in the land Want to know exactly what conditions and circumstances caused the financial crisis of 2008 9 What or who caused the housing bubble and housing burst Was it lack of regulation, or too much regulation Was it the bankers or the politicians Was it the community organizers, the myth of affordable housing, the bundling of securities, or what The answers are spelled out here in detailed and compelling, but simple, argumentation They are probab [...]


    24. Sowell is a master at using evidence to back up his assertions I chose to read this book as a way to learn about the housing crisis but also as a window into the Chicago school of economics While I did not initially agree with many of his arguments, especially around his acerbic critique of The New Deal, I could see his rationale for criticizing inadequately thought out government interference Excited to read of his works


    25. Once again, Sowell is unrivaled in cutting through all the melodramatic popular rhetoric and widely held fallacious assumptions to get to the core economic issues underlying what will hopefully be the most extreme economic event of most of our lives At the end of it all, the economic lesson that all outcomes must be considered, both short and long term becomes the key take away from this text It is as simple as it is disregarded in our political culture.


    26. While i agree with Sowell s thesis that government intervention in the market and progressive activism lead to the housing crash I think he went a little easy on the banks and mortgage companies They were pressured into giving out subprime mortgages but the decision to do so was still a conscientious decision.


    27. It s a simple read to show how government intervention is the main driver that drive the housing boom and bust The author seems to be supporting classic economy in the end to advocate adjustment totally by the market, I m not sure I agree with that.


    28. Clear Concise Helpful This work represents required reading if one desires to speak intelligently on the subject of the housing crisis in America and the political realities attaching to its cause and response.



    29. This book started off promisingly, with a well paced, easy to understand explanation of housing markets I learned a few interesting facts was excited to learn Slowly, however, it started sliding downhill First, there were some racially tinged comments, essentially assuming that racism can t be real because there s no way homo economicus would allow that Then, he starts to complain about politicians, both broadly and specifically Some of these complaints had merit than others, and I m sure ther [...]


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