federal reserve: The Never Ending Story- Chapter XX
- 05/17/10 06:14 PM
Before 2008, few, if any, paid attention to bank mergers or the slow but steady increase in unemployment. Everybody was intent on increasing home sales and home prices. Few economists were warning of potential adjustments to the market and they were branded as "nay-sayers" or alarmists. The real estate industry was booming; buyers with modest incomes and good credit scores were qualifying for home loans; investors were able to get loans to repair or upgrade houses, sometimes several at a time, based on the homes future equity (house prices could only go up or drop only 5-10%, right?). Builders were selling … (2 comments)
Before 2008, few, if any, paid attention to bank mergers or the slow but steady increase in unemployment. Everybody was intent on increasing home sales and home prices. Few economists were warning of potential adjustments to the market and they were branded as "nay-sayers" or alarmists. The real estate industry was booming; buyers with modest incomes and good credit scores were qualifying for home loans; investors were able to get loans to repair or upgrade houses, sometimes several at a time, based on the homes future equity (house prices could only go up or drop only 5-10%, right?). Builders were selling … (2 comments)
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