Pitt economics professor revisits 2007-2009 credit crisis

Working with a CRC research faculty consultant, Pitt Economics Professor Stefania Albanesi processed a large panel of anonymous data on debt and defaults. Her findings shift the accepted narrative that the credit crisis was caused by subprime borrowers defaulting on mortgages. Albanesi found instead that the biggest growth in mortgage debt actually came from borrowers with high and medium credit scores, not those with low scores. “It was the borrowers with higher credit scores who also represented a disproportionate number of defaults," explains Albanesi. Find out more about her work in the April 17 National Public Radio story "A Decade After The Bubble Burst, House Flipping Is On The Rise." 

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