Right. When they realized that they had it wrong sort of collectively. Right. And of course, again, you also see an overreaction at that time because the markets decided and you see that for example, the prices of triple A rated mortgage backed securities that the world is going to come to an end. But again, fortunately, the policy at that point became extremely effective, extremely aggressive. And so by March of 2008, the financial system was more or less rescued. So when you look back at expectations data from this time, what do you see? How does this correlate to what we saw in the financial markets? Well, there are several things that I can talk about. So the first one is the expectations data in the housing market and with respect to the risks of mortgage backed securities. In fact, they're totally consistent with the bubble, which is to say that people thought that home prices are going to rise much faster than was realistic or plausible, of course, than they actually did. And (29/44)
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