Journal of International Business and Economics

Growth in Home Purchase Price Preceding Crisis Explained by Technology Advancement: Eddison Walters Risk Expectation Theory of the Global Financial Crisis of 2007 and 2008 Confirmed
Dr. Eddison T. Walters

Abstract
The lack of evidence in the literature supporting the widely accepted theory of a real estate bubble, or a financial bubble which was the cause of the Global Financial Crisis of 2007 and 2008, prompted the researcher to raise questions regarding the cause of the Global Financial Crisis of 2007 and 2008. Walters (2018) presented evidence which suggested there was no statistically significant evidence in changes of net FDI inflow for developed countries for periods preceding and subsequent to the Global Financial Crisis of 2007 through 2008. The development of Eddison Walters Risk Expectation Theory of the Global Financial Crisis of 2007 and 2008, in Walters (2018) presented an alternative theory for the cause of the Global Financial Crisis of 2007 through 2008. This new theory resulting from data analysis in the research conducted in Walters (2018), raised serious questions regarding the accuracy of an abundance of available capital which was suggested as the cause of a financial bubble, leading to a real estate bubble in the United State housing market, causing the real estate crash, which triggered the Global Financial Crisis of 2007 and 2008.Questions raised in Walters (2018), called for further investigation into the cause of home purchase price increase, which many in the literature have suggested led to a real estate market crash in the United States preceding the Global Financial Crisis of 2007 through 2008. It is critical to gain an understanding of exactly what cause home purchase price across the United States to increase. This knowledge will provide researches with a better understanding of the cause of the Global Financial Crisis of 2007 and 2008, avoiding the same mistakes being made in the future.

Full Text: PDF     DOI: 10.15640/jibe.v7n2a15