Free Republic
Browse · Search
News/Activism
Topics · Post Article

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
[ Post Reply | Private Reply | To 25 | View Replies ]


To: dangus

Sorry if I misread. I got the distinct impression the author believed a falsehood I find to be very widely held.

That somehow our gains during the boom were real, and could have been sustained if the government, or the banks, or the evil greedy (insert villains of your choice) hadn’t screwed things up.

Very few people appear willing to recognize that the money we “made” on real estate during the boom wasn’t real. This is the nature of booms - their gains are illusory (unless you are wise or lucky enough to sell at the right time), and when it collapses you’re likely to wind up lower than if the boom hadn’t happened.

IOW, we haven’t “lost” nearly as much as it appears. A great deal of what was lost never really existed. It was an illusion.


48 posted on 09/30/2011 10:35:53 AM PDT by Sherman Logan
[ Post Reply | Private Reply | To 36 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson