Capitalism: Success, Crisis, and Reform : Lecture 13 - The Mortgage Meltdown in Cleveland| 49mins
Director: Open Yale Courses | Producer: Open Yale Courses
Focus Years: 2009 | Country: United States
Professor Rae discusses the subprime mortgage crisis. Major actors are presented and analyzed, including homebuyers, brokers, appraisers, lenders, i-banks, and rating and government agencies. Major actors' incentives and risks are assessed. Professor Rae also presents a brief history of government involvement in mortgage markets. Deregulation of the industry and its consequences are explored, and Professor Rae facilitates a discussion on apportioning blame for the collapse of the U.S. housing market.