[quote=earlyretirement][quote=SK in CV][quote=spdrun]Horseshit — the bubble basically didn’t happen in markets where 20% down was required (i.e. Texas). It was gov’t-encouraged bank lending run amuk.[/quote]
Beyond silliness run amuck. Not even worthy of argument. I think you’re smarter than this. Maybe not.[/quote]
While Texas didn’t get as crazy as some places like in California, Las Vegas, Phoenix, Miami, etc… it did have a run up in prices and a big correction as well. I made some offers on properties a few years ago and definitely there was a run up in prices and subsequent correction. Not as bad as other places but they did have a run up nonetheless.
You can’t just blame the government for the bubble and in fact there is a lot of blame to go around. The truth is there is no way the bubble would have gotten to the level it did without the PRIVATE side. Take a look at the derivatives market from 2000 to 2007. Without those, no way we would have seen the bubble go as high as it did.
There are a LOT of players to blame. Not just the government.
This is a GREAT link that I think is a good synopsis of what led to the bubble. I find it to be spot on target.
That isn’t a bad summation at all. You’ll note it doesn’t even mention low down government backed loans identified as the problem in the comment I responded to. Why? Because government backed low down payment loans (primarily FHA) virtually disappeared during the bubble, replaced by private loans.
