A report from the Joint Center for Housing Studies of Harvard University concluded that excess risk in the primary mortgage market was linked to demand on the secondary capital markets for mortgages with higher yields than prime mortgages, as well as the multiplication and magnification of this risk through actions taken in the capital markets. "The combination of a glut of global liquidity, low interest rates, high leverage, and regulatory laxity in the context of initially tight and then overvalued housing markets triggered staggering risk taking," said Eric S.
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