Mortgage Foreclosures and Older Americans

2020 ◽  
pp. 106-115
Author(s):  
Lori A. Trawinski
Keyword(s):  
Financial Crisis ◽  
Mortgage Market ◽  
Economic Conditions ◽  
Mortgage Loans ◽  
Older Americans ◽  
Mortgage Debt ◽  
Home Prices ◽  
The Past ◽  
Mortgage Foreclosures ◽  
Over Time

Economic conditions improved since the 2008–09 mortgage market crisis, and home prices recovered in many areas. Nevertheless, over time, growing numbers of older households have taken on greater mortgage debt than in the past. These families are also carrying mortgage loans into retirement, far more than they did in the past. Foreclosure rates for all loans have decreased to pre-recession levels for borrowers under age 50, while for borrowers age 50+, foreclosure rates in 2017 were higher than in 2007. This means that many older homeowners may face the loss of their homes, despite the fact that the economy improved after the financial crisis.

scholarly journals Housing Wealth or Collateral: How Home Value Shocks Drive Home Equity Extraction and Spending

2020 ◽  
Author(s):  
Henrik Yde Andersen ◽  
Søren Leth-Petersen
Keyword(s):  
Interest Rates ◽  
Mortgage Market ◽  
Housing Wealth ◽  
Home Equity ◽  
Fixed Rate ◽  
Mortgage Loans ◽  
Mortgage Debt ◽  
Individual Level ◽  
Home Value ◽  
Home Values

Abstract We examine whether unanticipated changes in home values drive spending and mortgage-based equity extraction. To do this, we use longitudinal survey data with subjective information about current and expected future home values to calculate unanticipated home value changes. We link this information at the individual level to high quality administrative records containing information about mortgage borrowing as well as savings in various financial instruments. We find that the marginal propensity to increase mortgage debt is 3%–5% of unanticipated home value gains. We find no adjustment to other components of the portfolio, and we find that mortgage extraction leads to an increase in spending. The effect is driven by young households with high loan-to-value ratios, which is consistent with the effect being driven by collateral constraints. Further, we find that the effect is driven by home owners who actively take out a new mortgage. The price effect is magnified among fixed rate mortgage (FRM) borrowers who have an incentive to refinance their loans to lock in a lower market rate. These results point to the importance of the mortgage market in transforming price increases into spending and suggest that monetary policy can play an important role in transforming housing wealth gains into spending by affecting interest rates on mortgage loans.

Analyst Forecast Bundling

2020 ◽  
Vol 66 (9) ◽  
pp. 4024-4046 ◽  
Author(s):  
Michael Drake ◽  
Peter Joos ◽  
Joseph Pacelli ◽  
Brady Twedt
Keyword(s):  
Cost Saving ◽  
Earnings Forecasts ◽  
Research Process ◽  
Economic Conditions ◽  
Analyst Forecast ◽  
The Past ◽  
Field Evidence ◽  
Tiered Services ◽  
Saving Measure ◽  
Over Time

Changing economic conditions over the past two decades have created incentives for sell-side analysts to both provide their institutional clients tiered services and to streamline their written research process. One manifestation of these changes is an increased likelihood of analysts’ issuing earnings forecasts for multiple firms on the same day. We identify this bundling property and show that bundling has increased steadily over time. We provide field evidence that the practice is a cost-saving measure, a natural by-product of analysts focusing on thematic research, and a reflection of forecast updating that occurs in advance of important events. Our empirical analyses show that bundled forecasts are less accurate, less bold, and less informative to investors than nonbundled forecasts. We also find that analysts who produce bundled forecasts provide valuable specialized services to their institutional clients. Our findings ultimately demonstrate that forecast bundling has important implications for the properties of analysts’ forecasts. This paper was accepted by Shiva Rajgopal, accounting.

Partisan Bias, Economic Expectations, and Household Spending

2021 ◽  
pp. 1-46
Author(s):  
Atif Mian ◽  
Amir Sufi ◽  
Nasim Khoshkhou
Keyword(s):  
Economic Conditions ◽  
Political Polarization ◽  
Large Shift ◽  
Partisan Bias ◽  
White House ◽  
Household Spending ◽  
The Past ◽  
Economic Expectations ◽  
The U.S ◽  
Over Time

Abstract The well-documented rise in political polarization among the U.S. electorate over the past 20 years has been accompanied by a substantial increase in the effect of partisan bias on survey-based measures of economic expectations. Individuals have a more optimistic view on future economic conditions when they are more closely affiliated with the party that controls the White House, and this tendency has increased significantly over time. Individuals report a large shift in economic expectations based on partisan affiliation after the 2008 and 2016 elections, but administrative data on spending shows no effect of these shifts on actual household spending.

scholarly journals Driver Countries in Global Banking Network

Entropy ◽  
2020 ◽  
Vol 22 (8) ◽  
pp. 810
Author(s):  
Farzaneh Atyabi ◽  
Olha Buchel ◽  
Leila Hedayatifar
Keyword(s):  
United States ◽  
Principal Component Analysis ◽  
Financial Crisis ◽  
Principal Component ◽  
Bank Lending ◽  
The Past ◽  
Cross Border ◽  
Global Banking ◽  
Over Time

We analyze the network of cross-border bank lending connections among countries from 1977 to 2018. The network includes core countries that lend money and peripheral countries that borrow money from core countries. In nowadays highly connected banking network, financial crisis that start from a country can spread to other countries very fast and cause global affects. We use principal component analysis (PCA) to find the influential lending (core) countries in this network over the years and clusters of borrowing (peripheral) countries related to these impactful core countries. We find three clusters of peripheral countries, with some constant and some changing members over time. This can be a sign of changes in the financial or political interactions among countries. The changes in the role of core countries and how these roles get affected by the important financial crisis in the past decades is investigated. Among 31 of core countries, 7 countries have a partially or constantly important role in the network including France, United Kingdom, United States, Japan, Germany, Chinese Taipei and Switzerland.

On the formation of a New Paradigm of fiscal Policy

2013 ◽  
pp. 152-158 ◽  
Author(s):  
V. Senchagov
Keyword(s):  
Public Finance ◽  
Fiscal Policy ◽  
Financial Crisis ◽  
Global Financial Crisis ◽  
Domestic Demand ◽  
Real Economy ◽  
New Paradigm ◽  
Monetary Aggregate ◽  
The Past ◽  
The Global Financial Crisis

Due to Russia’s exit from the global financial crisis, the fiscal policy of withdrawing windfall spending has exhausted its potential. It is important to refocus public finance to the real economy and the expansion of domestic demand. For this goal there is sufficient, but not realized financial potential. The increase in fiscal spending in these areas is unlikely to lead to higher inflation, given its actual trend in the past decade relative to M2 monetary aggregate, but will directly affect the investment component of many underdeveloped sectors, as well as the volume of domestic production and consumer demand.

The Pandemic Exposes an Ailing US Governance Model

2020 ◽  
Vol 119 (820) ◽  
pp. 310-316
Author(s):  
Alasdair Roberts
Keyword(s):  
Financial Crisis ◽  
Developing World ◽  
Global Financial Crisis ◽  
Political Polarization ◽  
Washington Consensus ◽  
The Past ◽  
Governance Model ◽  
Governance Challenges ◽  
The Global Financial Crisis ◽  
Current Governance

Since the 1990s and Bill Clinton’s embrace of key parts of Ronald Reagan’s legacy, mainstream US governance has been guided by a bipartisan consensus around a formula of shrinking the federal government’s responsibilities and deregulating the economy. Hailed as the ultimate solution to the age-old problem of governing well, the formula was exported to the developing world as the Washington Consensus. Yet growing political polarization weakened the consensus, and in a series of three major crises over the past two decades—9/11, the global financial crisis, and the COVID-19 pandemic—US policymakers opted for pragmatism rather than adherence to the old formula, which appears increasingly inadequate to cope with current governance challenges.

Mutual fund management in the period of financial crisis

2017 ◽  
Vol 31 (2) ◽  
pp. 75-81
Author(s):  
О. А. Bank
Keyword(s):  
Financial Crisis ◽  
Mutual Fund ◽  
Economic Recession ◽  
Investment Strategy ◽  
Economic Conditions ◽  
Investment Strategies ◽  
Fixed Income ◽  
Fund Management ◽  
Fund Managers ◽  
Different Types

Mutual fund managers do not have full freedom in choosing investment strategies - they are limited both by the laws and by investment declarations of the funds. Investment strategy cannot be fully changed even in financial crisis but it only can be corrected. This fact could not be characterized as a disadvantage because different types of funds are efficient in different time even during the same economic recession. Mutual fund manager should rationally invest funds of their clients: it is better to keep the maximum possible part of the portfolio in cash and instruments with fixed income on the declining market and it is better to keep shares on the rising market. However the choice of bonds also as the choice of shares should pay respect for the features of these instruments during unfavorable economic conditions. Russian mutual fund management differs from fund management in other countries as in stable economic situation so in the circumstances of financial crisis.

Introduction

2018 ◽  
Author(s):  
Telesca Giuseppe
Keyword(s):  
Structural Analysis ◽  
Institutional Change ◽  
Cultural Context ◽  
The Past ◽  
Final Goal ◽  
Social Structural ◽  
Country Analysis ◽  
Cross Country ◽  
Over Time

The ambition of this book is to combine different bodies of scholarship that in the past have been interested in (1) providing social/structural analysis of financial elites, (2) measuring their influence, or (3) exploring their degree of persistence/circulation. The final goal of the volume is to investigate the adjustment of financial elites to institutional change, and to assess financial elites’ contribution to institutional change. To reach this goal, the nine chapters of the book introduced here look at financial elites’ role in different European societies and markets over time, and provide historical comparisons and country and cross-country analysis of their adaptation and contribution to the transformation of the national and international regulatory/cultural context in the wake of a crisis or in a longer term perspective.

Newman's Early Roman Catholic Legacy, 1845-1854

2017 ◽  
Author(s):  
C. Michael Shea
Keyword(s):  
Nineteenth Century ◽  
Catholic Church ◽  
Roman Catholic ◽  
Roman Catholic Church ◽  
John Henry Newman ◽  
Christian Doctrine ◽  
European Continent ◽  
The Past ◽  
Immaculate Conception ◽  
Over Time

For the past several decades, scholars have stressed that the genius of John Henry Newman remained underappreciated among his Roman Catholic contemporaries, and in order to find the true impact of his work, one must look to the century after his death. This book takes direct aim at that assumption. Examining a host of overlooked evidence from England and the European continent, Newman’s Early Legacy tracks letters, recorded conversations, and obscure and unpublished theological exchanges to show how Newman’s 1845 Essay on the Development of Christian Doctrine influenced a cadre of Catholic teachers, writers, and Church authorities in nineteenth-century Rome. The book explores how these individuals then employed Newman’s theory of development to argue for the definability of the new dogma of the Immaculate Conception of Mary during the years preceding the doctrine’s promulgation in 1854. Through numerous twists and turns, the narrative traces how the theory of development became a factor in determining the very language that the Roman Catholic Church would use in referring to doctrinal change over time. In this way, Newman’s Early Legacy uncovers a key dimension of Newman’s significance in modern religious history.

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