Econintersect: Click Read more >> below graphic to see today’s list.
The top of today’s reading list is an NBER working paper that finds predatory lending increased defaults in the sub-prime crisis …….. and the last article has Nobel Laureate warning of a new housing bubble.
- Predatory Lending and the Subprime Crisis (Sumit Agarwal, Gene Amromin, Itzhak Ben-David, Souphala Chomsisengphet and Douglas D. Evanoff, NBER Working Paper No. 19550, October 2013) Abstract. Hat tip to Macro Business. Predatory lending in sub-prime mortgages raise defaults by 1/3.
- In Which I Carry Yet More Water for the Commissars-Turned-Capitalists of Shanghai (Brad DeLong) Brad DeLong has contributed to Global Economic Intersection. This is ther latest part of a debate about China between DeLong and Jeff Faux. DeLong projects that China’s growth will continue and later in this century America will need China as a friend.
- Possible overvaluation of residential property in German cities (Deutsche Bundesbank, 21 October 2013) Overvaluation is some cities may reach 20%.
- Bond-fund charts of the day, rising-rates edition (Felix Salmon, Reuters) Clever animated graphs.
- China’s ‘wall of money’ (Alan Kohler, China Spectator 21 October 2013) In order to pursue reforms at home, the Chinese government will need to break down domestic power structures. To do this they will loosen restrictions on Chinese investment abroad and this could lead to a flood of trillions of dollars out of China.
- ‘This is Mars’: Images of an intriguing planet (The Washington Post, 16 October 2013) Ten great slides of the surface of Mars.
- Blogs review: The structural balance controversy (Jeremie Cohen-Setton, Improving economic policy) Hat tip to Andrew Lainton. “The implausible results of the European Commission’s production function method to estimate potential output and structural deficits.”
- The Inefficient Market Hypothesis (Nancy Folbre, The New York Times, 21 October 2013) This economist says that there is still too much faith and trust in unregulated markets.
- Nick Brown Smelled Bull (Vinnie T. Rotondaro, Narratively) A thorough analysis of a problem in social science research through the story of an individual example.
- Nobel Prize winner warns of ‘bubbly’ home prices (Reuters, CNBC)