by Alex J. Pollock
American Enterprise Institute
April 02, 2013
It has been almost seven years since the mid-2006 peak of the spectacular U.S. housing bubble. With an American housing recovery now at last under way, it is a good time to re-state the repetitive lessons of financial history. The bubble, the panics and crises of 2007-09, and the extended bust and post-bubble doldrums, present a striking case of recurring financial and political patterns. This is true not only in the U.S., but also in the European housing and government debt disasters. These patterns notably include the painful dilemmas of governments when using taxpayers’ money to offset the losses of financial firms, all in the name of financial stability.

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