A fascinating analysis of the critical role commercial property
investment played in the economic boom and bust during the global
financial crisis
The unprecedented financial boom stretching from the mid-1990s through
2008 ultimately led to the deepest recession in modern times and one of
the slowest economic recoveries in history. It also resulted in the
emergence of the draconian austerity policies that have swept across
Europe in recent years. Property Boom and Banking Bust offers an
expert insight into the complex property market dynamics that
contributed to the Great Financial Crisis of 2008 and its devastating
economic consequences. It is the first book to focus on a woefully
underreported dimension of the crisis, namely, the significant role that
lending on commercial property development played in the crisis. Among
other key topics, the authors explore the philosophical and behavioral
factors that propelled irresponsible bank lending and the property boom;
how it led to the downfall of the banks; the impact of the credit crunch
on the real estate industry generally in the wake of the financial
crisis; the catastrophic effects the property bust had on property
investors, both large and small; and how the financial institutions have
sought to recover in the wake of the financial crisis.
- Provides valuable insights into what happened in previous booms and
busts, particularly in the 1970s and 1980s, and how they compare with
the most recent one
- Offers an expert assessment of the consequences of the global
financial crisis for the banking system and the commercial property
industry
- Examines strategies banks have used to recover their positions and
manage the overhang of indebtedness and bad property assets
- Addresses strategies the real estate industry have used to recover
from the collapse in property values
Written in an accessible style, and featuring numerous insider case
accounts from property bankers, Property Boom and Banking Bust
disentangles the complex, tightly-woven factors that led to the Great
Financial Crisis of 2008, while offering powerful lessons for property
industry professionals on how to avoid having history repeat itself.
