Don’t blame subprimes
By Michael Hill | Monday, February 11, 2008 | The Washington Post
“…What’s happening in the market today is not the bursting of a five-year bubble but the bursting of a 40-year bubble and the failure of the mortgage loan system to meet the needs of the marketplace. The truth is that subprime lenders, by responding to demand, were the finger in the dike for the whole housing market.
The real problem is affordability and the incongruity between incomes and home pricing.
Forty years ago, the median national price of a house was about twice the median household income. In some parts of the country, this ratio was closer to 1 to 1. Twenty years ago, the median home price was about three times income. In the past 10 years, it jumped to four times income….”…BS
http://www.washingtonpost.com/wp-dyn/content/article/2008/02/10/AR2008021001971_pf.html
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