People occasionally say, 'hindsight is twenty-twenty', meaning that once something's happened, it's clear to be seen. That's not my observation; we rarely understand what happened to us. We certainly don't agree on what's happened.
I stumbled across Al Gore speaking about the "next" economic bubble (carbon asset valuations). In doing so, he casually mentioned that the Real Estate Bubble happened because so many people defaulted on their no-down-payment loans.
http://finance.yahoo.com/blogs/daily-ticker/al-gore-carbon-bubble-going-burst-avoid-oil-121707563.html
That's not what I remembered; so I looked it up. It turns out that there was not a spike in non-performing home loans before August 2007; so the "bad" homeowner doesn't actually look like the culprit. There were dozens of opinion pieces in financial and economic journals, blaming either government or the private sector for stupidity, greed, and blindness. However, opinions were much more prevalent than facts.
So, why did the U.S. go into a real estate recession in August 2007? To be continued...
No comments:
Post a Comment