A couple people forwarded me a link to a 116-page pdf titled An Overview of the Housing/Credit Crisis And Why There Is More Pain to Come that is worth checking out.
Here’s a look at the table of contents:
- Overview of the Great Mortgage Bubble
- Causes of the Great Mortgage Bubble
- Consequences of the Bursting of the Great Mortgage Bubble
- The Outlook for Home Prices is Grim
- Economic Weakness Creates an Additional Headwind for Home Prices
- There Are Only a Few Bits of Good News
- What Does the Future Hold?
- A Primer on Option ARMs
- A Primer on HELOCs and Closed-End Seconds
- A Closer Look at Mortgage Loans That Were Securitized: Quantity and Quality
- A Closer Look at Mortgage Loans That Were Securitized: Defaults
- Where Did the Securitized Mortgages End Up? A Primer on ABSs and CDOs
- The Opportunity in Distressed Debt
All in all it’s a great paper that I recommend for anyone that is still confused about how we ended up here and why this was never a “normal housing cycle.”