Quote:
Originally Posted by sailaway21
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Well, finally. We have an article which was actually researched before the guy wrote it.
As to his conclusions? He actually has it partially right.
"As Liebowitz observes, what we are currently seeing is often characterized as a subprime crisis, but in fact, it is an adjustable-rate mortgage problem. "
I agree with this, and is why I called for government help on the other end of the spectrum instead of the bailout they passed.
However, he over stated the 'flipper' syndrome significantly. Did they walk away from homes? Certainly. But not enough to impact the numbers the way the author has slanted his story.
Each of these was a key component in the mortgage mess in the following order:
1.) adjustable rate mortgages (#1 problem)
2.) underemployment
3.) loss of job
4.) Flippers (as much as 25% of the Florida, Ca, Az market which drove prices up before 2006)
The media covered all of these. Check back issues of Time magazine, Newsweek, the New York Times, etc..