That wasn’t a housing bubble, and it had nothing to do with pricing. It had to do with lenders selling mortgages to anyone who could fog a glass, knowing full well they wouldn’t be able to repay them.
The bubble was accelerated by people assuming prices would always rise, often their own greed and flipping or becoming landlords, and this was only possible due to the financial engineering that made lending to these folks posivle, but all of that droce the value of the underlying assets down significantly.
You claim there wasn’t a bubble…look at home price values in the sunbelt in 05 vs 2009.
artyom@piefed.social 17 hours ago
That wasn’t a housing bubble, and it had nothing to do with pricing. It had to do with lenders selling mortgages to anyone who could fog a glass, knowing full well they wouldn’t be able to repay them.
pdxfed@lemmy.world 13 hours ago
The bubble was accelerated by people assuming prices would always rise, often their own greed and flipping or becoming landlords, and this was only possible due to the financial engineering that made lending to these folks posivle, but all of that droce the value of the underlying assets down significantly.
You claim there wasn’t a bubble…look at home price values in the sunbelt in 05 vs 2009.
TF are you talking about there wasn’t a bubble
artyom@piefed.social 12 hours ago
There was no “financial engineering”. It was just fraud.
“Bubble” does not mean “prices go up and then back down again”.