Was subprime possible to predict?

Research by the Boston Federal Reserve finds that market participants should have predicted the steep rise in foreclosures that occurred in 2007 and 2008.

The research states that given available data, market participants should have been able to understand that a significant fall in house prices would cause a large increase in foreclosures, although loan-level (as opposed to ownership-level) models would have predicted a smaller rise than actually occurred.

By examining analyst reports and

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