This situation has further accelerated the deleveraging process and tightened credit conditions for businesses and households. When liquidity pulled back dramatically in August 2007, housing suffered mightily. 3 For reasons well documented, including expectations that home prices would invariably increase, housing proved to be a highly vulnerable asset class. Many homeowners, particularly those that purchased properties during 2005 through 2007, are suffering.
The World Bank and International Finance Corporation (2010), “Bank Governance: Lessons from the Financial Crisis”, Note Number 13. 9. Group of Thirty, “Toward Effective Governance of Financial Institution”. 8  BIS central bankers’ speeches