Author: Transhumanist

Who caused the 2008 housing bubble to burst in the U.S.?   [Copy link] 中文

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Post time 2013-1-16 06:40:15 |Display all floors
The question is wrong.
We should not ask "What caused the housing bubble to burst?".
Instead, we should ask "What caused the housing bubble to even exist?"

If we eliminate the one reason that caused the bubble to burst, there will still be many more reasons for bubbles to burst in the future. So we should rather ask how we can avoid bubbles all together.
All market bubbles have two things in common: unnecessarily loose monetary politics and overregulation in the bubble's market.

So we should have much tigher monetary policies (especially in Europe - the US can't do that, becuase many developing countries pegged their currencies to the dollar). Moreover, we should be much more vigilant when we're manipulating markets (e.g. to make house ownership more affordable). The goals may be noble, but the outcome terrible, as we saw once more during the recent crises.

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Post time 2014-7-11 08:44:46 |Display all floors
dusty1 Post time: 2013-1-15 17:31
A quick buck and greed

True dat

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Post time 2014-7-11 10:22:42 |Display all floors
This post was edited by NaziSlayer at 2014-7-11 10:29
Zircon Post time: 2014-7-11 08:44
True dat

Sorry, but people who blame the bankers represent the complete ignorance of the reality of how the modern markets and finances work.

Real answer? Everyone is to blame. Because everyone participated and played a part.

And saying how much things actually worth is always a tricky business. Largely based on peoples fickle day to day feelings actually... And people wonder why markets can go wrong and blame whoever they dislike.
If people didn't insist on paying over over priced homes or taking out loans at unsustianable debt rates, it wouldn't have happend. (please don't give me the garbage about how people shouldn't be expected to turn down any loans, then you are arguing people are too stupid to manage any of their personal finances PEROID.)

If real estate developers didn't keep building when the market had all the housing it needed and gave inflated projected profit rates (because they want to look as good as possible to investors) it woudn't happend.

If bankers hadn't been willing to beleive the developers, individuals, and the general market consesus on the inflated return rates and not given many loans as a result, it wouldn't have happend.

If government watchdog agencies had functioned properly and stepped in to raise the red flag, it wouldn't happend.

Everyone gets the blame except people who didn't work in one of above industires and PAID for their mortagage as they agreed too. (Statistically.... Mexicans were most guilty of defaulting on such laons. Although that is an extremely controverisal topic.)

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Post time 2014-7-11 14:27:50 |Display all floors
raton Post time: 2013-1-15 21:56
You know nothing..! Stupid americans and greedy thieving jews. The jews gave stupid american mortg ...

hahahahaha~

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Post time 2014-7-14 11:12:56 |Display all floors
You had better worry about the Chinese housing bubble and what to do when it bursts.

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Post time 2014-7-19 08:17:21 |Display all floors
St_George Post time: 2013-1-15 23:59
another stupid american.

Thats a bit harsh, what they should have done is let them keep their ho ...

I agree, bailing out the banks helped no one but the banks etc, bailing out the people would have helped everyone, money trickles up not down.
I'm a little bit wrong and your a little bit right.
Everyone is entitled to my opinion.

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Post time 2014-7-19 09:50:29 |Display all floors
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Roach Exterminator

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