[shhrubbery!]

One significant driver I see for this type of lending is the fact that the decent house in the suburbs that cost $150,000 a couple of years ago is now selling for over $300,000.

Is it the cost of housing that is the "driver" for "this kind of lending" -- or the other way around?

IOW, isn't it the existence of interest-only mortgages, etc. that encourages the bidding-up of housing? The $60,000/year income family who previously thought they couldn't afford payments on that $300,000 house, now go ahead and buy it (since they "only" have to pay interest).

Another driver of housing cost inflation: The dual income family...

The authors of this book "point to the ferocious bidding war for housing and education that has quietly engulfed America's suburbs."

I.e., it is these two-income families, in their quest to live in suburbs with "good public schools," who have bid up the cost of housing so high.

Ironically, the phenomenon of working mothers has backfired. That second income, which was originally intended to help the family afford a nicer house in a nicer suburb with nicer schools, is now the driving force making that dream impossible (and driving many dual-income families into bankruptcy).

[I still care]

Interesting. I'll have to look at that book.

When I was growing up, women stayed home with the kids, except for times of difficulty. The father might have something on the side - and families made do with one car, one tv, etc. No birthday extravaganzas at party palaces, etc.

We would save up for things like dance lessons - a rare and special privilage. Kids played outside games like hopscotch instead of inside on expensive game systems.

We now spend two incomes on things one used to do.