The Housing Boom and Bust
| Company type | Book |
|---|---|
| Industry | Publishing |
| Founded | April 24, 2009 |
| Founder | Thomas Sowell |
| Products | Non-fiction book |
| Website | www |
The Housing Boom and Bust is a factual work authored by Thomas Sowell that explores the United States housing bubble alongside the ensuing subprime mortgage crisis. Released by Basic Books on April 24, 2009, and subsequently reprinted in 2010, the book delves into the political and economic causes behind the collapse of the American housing market.
Summary
Sowell, a Senior Fellow at the Hoover Institution, connects the Community Reinvestment Act to a decline in lending standards, which contributed to the growth of subprime mortgage issuance as financial institutions faced pressure to fulfill minority lending targets. He compares housing market trends in California with those in Texas, attributing California’s elevated prices to stringent zoning regulations. From a political standpoint, Sowell criticizes both the George W. Bush administration and Congress for obstructing audits of Fannie Mae and Freddie Mac, actions that he believes facilitated high-risk lending practices. He contends that policymakers mistakenly treated localized housing problems as a nationwide emergency.
Critical reception
Walter E. Williams, an economics professor at George Mason University, commended the book as "an eye-opener" regarding the housing market’s impact on the broader financial meltdown. Joseph Lawler of The American Spectator characterized it as a critique of the ruling elite’s inadequate response to the crisis. Art Carden, writing for Forbes, emphasized its accessibility to both experts and lay readers, praising Sowell’s thorough examination of key players, motivations, and historical background related to the downturn. Robert J. Samuelson of Newsweek noted the work’s partial perspective but acknowledged its value in offering a more complex explanation beyond solely blaming investment bankers and mortgage brokers.
External links
- The Housing Boom and Bust at Basic Books