Skyrocketing Home Prices and The Global Housing Crisis Today

Based on overwhelming evidence from data analysis the researcher concluded with absolute certainty, the Global Financial Crisis, the worldwide economic collapse, and the Great Recession were not caused by subprime mortgage lending. The current study concluded, the Global Financial Crisis of 2007 and 2008 was caused by the destruction of the subprime mortgage industry. The politicization of misinformation gave investors shorting mortgage-back securities an opportunity to take advantage of the mood of the country resulting from corporate mistrust that stemmed from the corporate reporting scandal a few years before the beginning of the financial crisis in 2007. Overwhelming evidence from data analysis in the current study suggested subprime mortgage lending did not cause an increase in the national mortgage delinquency rate. The narrative, individuals purchased homes they could not afford preceding the Global Financial Crisis was completely debunked based on the evidence presented in the current study. The evidence suggested subprime lending resulted in significantly lower mortgage delinquency rates preceding the financial crisis. The end of subprime lending resulted in skyrocketing national mortgage delinquency rates years after the subprime lending industry in the United States had been destroyed by misinformation. Mistakes by policymakers in the United States government significantly worsened the financial crisis leading to an acceleration of mortgage delinquencies across the country. The consensus among the political establishment, the media, big tech, and academia failed to raise questions regarding the false narrative of unscrupulous lending and the false conclusion of a real estate bubble. The evidence from data analysis suggested the entire narrative about subprime mortgage lending and the real estate bubble was misinformation used for politicization in the 2008 United States Presidential Election similar to the politicization of COVID-19 policies in the 2020 United States Presidential Election. Misinformation has put the global economy at significant risk. The continued rapid increase in home prices around the world today, is a direct result of the misinformation that caused the Global Financial Crisis, the worldwide economic collapse, and the Great Recession. Moderate-income families around the world today are at risk of being priced out of the housing market as increased home prices lead to rapid increase in rental housing. Higher education has used the misinformation that caused the Global Financial Crisis as justification to develop unethical business ethics and organizational behavior curriculums based on the false narrative creating a negative image of capitalism for students based on a false narrative. Capitalism is under attack from costly corporate social responsibility (CRS) and business ethics policies that put stockholder profits secondary to corporate political activism, which have been developed largely based on the misinformation about the cause of the Global Financial Crisis. Mainstream media and big-tech continued misinformation have become the most significant risk facing the global economy today. The misinformation must be addressed to avoid another global economic crisis such as the economic crisis caused by misinformation about the cause of the Global Financial Crisis of 2007 and 2008, and the misinformation that led to COVID-19 policies in 2020 that caused significant economic destruction.