Foreclosure rates in some areas have increased dramatically since the early 1990s - the same time frame in which the subprime market experienced its most rapid growth. As we all know, foreclosures do not affect just the borrower who loses his home; they affect the entire community. Multiple foreclosures in one neighborhood will bring down the property value for all homeowners in the neighborhood.
Narayana Kocherlakota: Clarifying the objectives of monetary policy Speech by Mr Narayana Kocherlakota, President of the Federal Reserve Bank of Minneapolis, at the Rapid City Economic Development / Black Hills Knowledge Network Forum, Rapid City, South Dakota, 7 October 2014. *  *  *  Thanks to David Fettig, Terry Fitzgerald, Rob Grunewald and Sam Schulhofer-Wohl for their assistance with these remarks.