Understanding the Commercial Real Estate Debt Crisis

Tonya D. Marsh, Assistant Professor of  Law, recently published a short essay on Harvard Business Law Review Online.“The popular, if simplistic, understanding of the most recent economic crisis is that it was triggered by the bursting of an unprecedented residential real estate bubble. In this narrative, the bubble was caused by interrelated factors—the irrational beliefs of homeowners that property values would continue to rise and the aggressive lending practices, which focused on maximizing the size and volume of loan originations at the expense of prudent underwriting.”

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