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To: dangus
Then the housing market stalled. Now banks weren't guaranteed to recoup delinquent mortgages by selling the house at prices higher than the mortgage value. But the banks COULDN'T just quit lending to "langauge minorities." They quit lending altogether. Declines in house prices accelerated.

Very carefully ignores the rather important fact that the housing market of the time was a bubble largely created by the influx of money generated by these exact programs.

IOW, the prices were artificially high.

The way this is worded, had these programs never existed the real estate market would still have boomed, it just never would have crashed. Which is utter nonsense.

25 posted on 09/30/2011 7:46:15 AM PDT by Sherman Logan
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To: Sherman Logan

I’m perplexed by such criticism. I carefully explained how the bubble was created by bidding up on a limited supply of homes, with cheap interest rates and insufficient money down, and explained what had happened that triggered these factors to cause the bubble.


36 posted on 09/30/2011 8:25:41 AM PDT by dangus
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