Gerardi, Kristopher S.; Lehnert, Andreas; Sherlund, Shane M. - Federal Reserve Bank of Atlanta - 2009
ask whether market participants underestimated the likelihood of a fall in house prices or the sensitivity of foreclosures … whole, understood that a fall in prices would have disastrous consequences for the market but assigned a low probability to …This paper explores the question of whether market participants could have or should have anticipated the large …