Informaton cascade / social contagion
People looked at what was happening around them, assumed that house prices would continue to increase over time, and based their decisions on unrealistic projections.
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The Global Financial Crisis »The Global Financial Crisis
Long-term causes of the financial crisis? »Long-term causes of the financial crisis?
Unintended consequences of earlier public policy choices »Unintended consequences of earlier public policy choices
Regulatory changes encouraged home ownership »Regulatory changes encouraged home ownership
House price bubble in the US »House price bubble in the US
Rising house prices encouraged speculation on house prices »Rising house prices encouraged speculation on house prices
Informaton cascade / social contagion
Fuelled by media coverage of rising house prices »Fuelled by media coverage of rising house prices
Information cascade »Information cascade
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