2016/05/17 by Bing Chen, BING CHEN, FRANK P. STAFFORD +1 · 18 citations
Business, Management and Accounting · Economics, Econometrics and Finance · #Business #Collateral #Economics #Finance #Financial Literacy, Pension, Retirement Analysis #Housing Market and Economics #Housing, Finance, and Neoliberalism #Monetary economics #Payment #Stock (firearms) #Stock market #Stock market bubble
paper · doi:10.1111/jmcb.12313
published in Journal of money credit and banking 48(4), 635-659 (Wiley)
openalex publication_date 2016/05/17 · openalex created_date 2025/10/10 · openalex updated_date 2026/08/06
As of 2007, many households had taken on very substantial commitments to housing and companion mortgage payments. At the same time they held little in the way of a traditional buffer stock of safer liquid assets but were more likely to have opened stock market accounts. Many of these families when experiencing subsequent mortgage payment difficulties are shown to have been more likely to exit the stock market. Mortgage difficulties also inhibited families from becoming new stock market participants. In this way stocks seem to have likely experienced some direct and indirect “collateral damage” from the housing market, 2007–9.