Quote Originally Posted by djbrow:
Who approved it? You and I...by electing politicians who knew about the house of cards but also knew that blowing it down would create a prolonged recession.
As goes housing goes the economy. You reduce borrowing power, you reduce spending, and on and on we go. No one wants to be that politician in charge when it comes to fruition.
That's why I laugh when people blame dems or repubs. This is one area where the letter beside the name didn't/doesn't matter.
So what you are saying, is that economies are based on people assuming ever growing amounts of debt, secured by real estate? Stick to your nursery rhymes, you clearly don't understand the way things work here.
You want house prices higher, so that people can borrow more money, because you believe that is what makes an economy work. No wonder you voted for Bush twice
The reason the economy is broken, is BECAUSE of people levering RE to the hilt. Eventually, we reach a point where people cannot afford to service this ever growing debt that you want to see everyone shackled to. At this point, the entire system is bankrupt, it collapses, the books are wiped clean and we start again. Have you looked out your window lately?
Economies consist of people producing and consuming stuff, via trade. People borrowing a shit ton of 'money' against their shelter, does nothing to help economic activity. Actually, it is what kills the cat. Lower housing costs are a net positive to the economy, because it makes everyone in the economic system, wealthier. Higher housing costs conversely make everyone poorer
Topic: Why Did The Housing Crash Happen?
this is the wrong question to ask. Ask yourself, Why did the housing Bubble happen,,,,,,,,,,the crash was merely the inevitable result of the bubble