2008 Annual Report: Breaking the Housing Crisis Cycle

A plan for breaking the housing crisis cycle is emerging from the epicenter of the nation’s foreclosure meltdown. In its just-released annual report, the Federal Reserve Bank of Cleveland is calling for a multi-faceted approach that aims to address the interconnected problems that have led to too many Americans losing their homes and too many neighborhoods falling into disrepair. Download the full report (PDF)


Essay: Breaking the Housing Crisis Cycle

An abandoned house

Since 2006, the U.S. housing markets have struggled, and Americans have been losing their homes at extraordinary rates. New foreclosures in Ohio alone during the past three years total 170,000—almost as many housing units as in the entire city of Cleveland. The institutions, market forces, and nonprofit community groups that normally come to the rescue of distressed homeowners and their neighborhoods have been overwhelmed with the growing scope of the problem. Read more

Print Story/Press Release

In its annual report, released today, the Federal Reserve Bank of Cleveland documents how the housing crisis cycle unfolded differently in its district than it did in other parts of the country. The Cleveland Fed also is proposing a multi-faceted approach to breaking the cycle that focuses on the interconnected nature of the problems that led to the crisis. Read more

 

Downloads and Fed Financials

Individual pdf files of the printed 2008 Annual Report are available. Read more

The Federal Reserve System published all Reserve Banks’ financial statements on the Board of Governors’ website in April:

Broadcast-Ready Scripts/Sound Bites

Use these broadcast-ready scripts and sound bites on the foreclosure crisis and proposals for breaking the housing crisis cycle.

  • Housing Crisis Playing out Differently in Federal Reserve Fourth District
  • Francisca Richter, Research Economist
  • Plan for Breaking Housing Crisis Cycle
  • Mark S. Sniderman, Executive Vice President
  • Population Decline in Some Areas Will Impact Housing Crisis
  • O. Emre Ergungor, Senior Research Economist
  • Over-Lending, Not Housing Bubble to Blame for Housing Crisis
  • Yuliya Demyanyk, Senior Research Economist
  • No Single Idea Will be Enough to Fix Housing Crisis
  • Mark S. Sniderman, Executive Vice President

All Broadcast Media


Video

Video Part 1

Part 1: How the Foreclosure Crisis Unfolded in the Fourth District

We didn’t suffer from the crash of hyper-inflated housing prices, as people did in California, Florida and other overheated housing markets. We suffered from over-lending.


Video Part 2

Part 2: Our Proposal for Breaking the Housing Crisis Cycle

The focus should be on a set of coordinated, long-term policies that target multiple points in the housing crisis cycle.

  • Loan modifications
  • Convert some of the excess housing stock to rental property.
  • Land banks are another useful tool for helping local governments deal with the problem of abandoned homes.
  • Robust code enforcement.
  • Recapitalize the banking system.

Flash presentation

A Walk Through the Housing Crisis Cycle

A plan for breaking the housing crisis cycle is emerging from the epicenter of the nation’s foreclosure problem. The Federal Reserve Bank of Cleveland calls for a multi-pronged approach that aims to address the interconnected issues that caused too many Americans to lose their homes and too many neighborhoods to fall into disrepair.

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