Date of this Version
Wharton Real Estate Review
The current capital market credit crisis was perpetrated by a confluence of factors, including a potent period of fear winning over greed; a near collapse of due diligence in the credit markets (a.k.a., more money than brains); a mismatch of short-term capital and long-term liabilities (and subsequent margin calls); and a critical error made by the Fed in setting monetary policy. As a result, credit markets will gradually rebalance over the next twelve months, as greed re-harnesses fear. However, the overall U.S. economy will continue to thrive in 2008, due in large part to government spending.
Linneman, P. D. (2008). How We Got to the Credit Crisis. Wharton Real Estate Review, 12 (1), 5-19. Retrieved from https://repository.upenn.edu/real-estate_papers/16
Date Posted: 27 November 2017