November 4, 2007

CHICKEN:

College Towns Escape the Pain (FORD FESSENDEN, 11/04/07, NY Times)

The subprime-lending crisis is in one sense simply the barometer of how far home prices have outstripped incomes. As homes became harder to afford, financing became more creative, and expensive. Irrational exuberance ensued, along with predation.

Consider that subprime mortgages helped drive us to the highest percentage of home ownership in our history and whether it isn't more likely that high prices were a function of easy financing and the increased number of buyers it creates than vice versa.

Posted by Orrin Judd at November 4, 2007 8:35 AM
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