Household Debt and the Great Depression

In November 1930, before anyone knew how Great the Depression would be, Charles Persons published an article in the Quarterly Journal of Economics called “Credit Expansion, 1920 to 1929, and Its Lessons.” His thesis was stated forcefully in the first paragraph: “The thesis of this paper is that the existing depression was due essentially to …

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Investors Pulling Back — What Happens to Housing Now?

Bill McBride at calculatedriskblog.com (a must read in the economics blogosphere) has been doing some fantastic posts on the abrupt pull-back by investors in the U.S. housing market. They were very aggressively buying homes in depressed markets from 2010 to 2012 thanks to their relative wealth and ability to achieve good credit, but the excitement is now …

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