The Financial Crisis Of The Housing Crisis
The roots of the most recent financial crisis, like most crises of this sort, can be traced back to a bubble, in this case the housing bubble. Between 2000 and 2005 the median sales price of a home in the United States rose from $143,600 to $219,600, a 53% price bump (Sowell, 2009). The housing bubble was even more pronounced on the west coast where land is at a premium: In Los Angeles and San Diego, the median home price rose 110% and 127% respectively.
The financial instrument at the heart of