Jump to ContentJump to Main Navigation
From Financial Crisis to Global Recovery$
Users without a subscription are not able to see the full content.

Padma Desai

Print publication date: 2011

Print ISBN-13: 9780231157865

Published to Columbia Scholarship Online: November 2015

DOI: 10.7312/columbia/9780231157865.001.0001

Show Summary Details
Page of

PRINTED FROM COLUMBIA SCHOLARSHIP ONLINE (www.columbia.universitypressscholarship.com). (c) Copyright University of Minnesota Press, 2022. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in CUPSO for personal use.date: 29 June 2022

Financial Crisis Origin

Financial Crisis Origin

(p.1) 1 Financial Crisis Origin
From Financial Crisis to Global Recovery

Padma Desai

Columbia University Press

This chapter explores the housing bubble phenomenon that led to the economic recession in the United States from 2007 to 2009. The first phase, from 2001 to 2004, was characterized by the availability of mortgage financing for home ownership facilitated by the lowering of overnight interbank borrowing costs (2001–2004) and the Congress-approved tax cuts (2001–2003). These initiatives were extended even more in the second phase, lasting until the end of 2007, when low mortgage rates encouraged Americans to take on massive mortgages for home ownership. People borrowed beyond their means in order to purchase properties with inflated values. Widespread borrowing ultimately led to financial crisis, which was completely felt at the turn of 2007. The chapter also discusses the rescue deals initiated in 2008.

Keywords:   housing bubble, economic recession, United States, mortgage financing, home ownership, interbank borrowing costs, tax cuts, rescue deals

Columbia Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs, and if you can't find the answer there, please contact us .