Problem: Countering Krugman, Peter J. Wallison wrote: "It is not true that every bubble—even a large bubble—has the potential to cause a financial crisis when it deflates." Wallison notes that other developed countries had "large bubbles during the 1997–2007 period" but "the losses associated with mortgage delinquencies and defaults when these bubbles deflated were far lower than the losses suffered in the United States when the 1997–2007 [bubble] deflated." According to Wallison, the reason the U.S. residential housing bubble (as opposed to other types of bubbles) led to financial crisis was that it was supported by a huge number of substandard loans – generally with low or no downpayments.
Peter J. Wallison believes that the huge number of these loans led to the financial crisis?
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Answer: substandard


Problem: In the 9th century, the rise of the cult of the Apostle James in Santiago de Compostela gave Galicia a particular symbolic importance among Christians, an importance it would hold throughout the Reconquista. As the Middle Ages went on, Santiago became a major pilgrim destination and the Way of Saint James (Camiño de Santiago) a major pilgrim road, a route for the propagation of Romanesque art and the words and music of the troubadors. During the 10th and 11th centuries, a period during which Galician nobility become related to the royal family, Galicia was at times headed by its own native kings, while Vikings (locally known as Leodemanes or Lordomanes) occasionally raided the coasts. The Towers of Catoira (Pontevedra) were built as a system of fortifications to prevent and stop the Viking raids on Santiago de Compostela.
To stop the Vikings from raiding, what did the Galicians build as a defense system?
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Answer: Towers of Catoira


Problem: By September 2008, average U.S. housing prices had declined by over 20% from their mid-2006 peak. As prices declined, borrowers with adjustable-rate mortgages could not refinance to avoid the higher payments associated with rising interest rates and began to default. During 2007, lenders began foreclosure proceedings on nearly 1.3 million properties, a 79% increase over 2006. This increased to 2.3 million in 2008, an 81% increase vs. 2007. By August 2008, 9.2% of all U.S. mortgages outstanding were either delinquent or in foreclosure. By September 2009, this had risen to 14.4%.
How many U.S. mortgages were either delinquent or in foreclosure by September 2009?
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Answer:
14.4%