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Based on the article Brewing Bubbles: How Mortgage Practices Intensify Housing Booms, why do you think the housing market has been prone to boom and
Based on the article Brewing Bubbles: How Mortgage Practices Intensify Housing Booms, why do you think the housing market has been prone to boom and bust cycles? That is, what factors tend to make the housing market more procyclical than other kinds of asset markets? Explain fully. Would requiring mortgage lenders to keep some of their loans on their books help reduce the procyclicality of the housing market? Why or why not?
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