Houston Housing Market

The Houston Housing Market, just like everywhere else in the country, has been feeling a pinch due to the credit crisis. I was inspired to make this post after reading a blog post on BiggerPockets. This well written article by Rob Blake struck me as well intended, but inaccurate. So, I decided to post a paper that I wrote for a course while attending Cornell University. The course I wrote the paper for was taught by Jon Kleinberg, a true genius, and covered several topics on information systems and networks. One of the topics covered was on how asymmetric information can cause previously robust markets to halt trade in what seems like overnight. The paper below introduces how CDOs are packaged and what events led up to the collapse of the mortgage backed securities market and concludes with a link to an explanation for this occurrence using an academic paper written by Nobel Laureate George Akerlof

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Nearly every weekday morning, two dozen journalists leave their homes to be locked up in some windowless room in Washington, D.C.  The location varies at random. One day they might find themselves in an old government building that has seen its glory days pass it long by. The next day they might find themselves locked [...]

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