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To: Onelifetogive

Chicken/egg. Real estate became inflated due to the crap loans.


3 posted on 06/08/2011 8:19:47 PM PDT by Jim 726
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To: Jim 726
That is only partially true.

Crap loans were a factor, but real estate assessment guidelines being uncoupled from indexing against the local population density, the local median income, and the total local housing supply played at least as big a part in this - and that was done under Carter. There was a time when the process made sure that a bank which was federally insured was not allowed to make loans on property greater than what the property could reasonably bring as collateral.

It is my belief that the current situation happened by design and the roots go back at least to the mid seventies and followed a step by step plan.

8 posted on 06/08/2011 8:32:15 PM PDT by MrEdd (Heck? Geewhiz Cripes, thats the place where people who don't believe in Gosh think they aint going.)
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