X-Nico

2 unusual facts about Chicago real estate bubble of the 1830s


Chicago real estate bubble of the 1830s

Edward Glaeser, professor of economics at Harvard, notes that the Chicago property bubble was more a product of unpredictability than irrationality.

Because the Bank of Illinois was beholden to state policy, and because the state legislature forced the bank to support real estate, Homer Hoyt, land economist and real estate appraiser, states that the Bank of Illinois may not have been charging appropriate interest rates given the probability of default.



see also