Institutions and Incentives in Mortgages and Mortgage-Backed Securities

Explore the history of debt, financial crises, and the recent collapse of the real estate market in this 50-minute lecture from Yale University's "Capitalism: Success, Crisis and Reform" course. Delve into topics ranging from ancient debt slavery to modern real estate financing in New York City with guest speaker Will Goetzmann, Director of the Yale International Center for Finance. Examine recent research on the mortgage market collapse, challenging the notion that it led to the larger financial crisis. Analyze data on real estate markets, price growth versus subprime approvals, and the relationship between past and future growth in mortgage prices. Investigate 2006 mortgage regressions and evidence for demand effects on loan approval likelihood. Gain insights into the complexities of financial institutions and incentives in mortgages and mortgage-backed securities.

- Chapter 1. Financial History, with Will Goetzmann
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- Chapter 2. Current Financial Crisis
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- Chapter 3. Price Growth vs. Subprime Approvals
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- Chapter 4. Estimating the Relationship between Past Growth and Future Growth in Mortgage Prices
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- Chapter 5. 2006 Mortgage Regressions
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- Chapter 6. Evidence for Three Demand Effects and Loan Level Likelihood of Approval
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