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To: neverdem
More Cato Institute drivel.

The housing bubble in those cities used in this article was not caused by "land use regulations" Those cities are the same ones where a huge influx of illegal aliens with huge instantaneous housing needs were issued the no docs, no down payment, no income required subprime mortgages that were certain to go into default.

Those mortgages and their attendant bundling into derivatives created a mortgage Ponzi scheme that was guaranteed to fail. And when it did, it brought down the financial house of cards, causing banks to fail and otherwise good mortgages to go under water as housing values collapsed.

Here is a more detailed article that appeared in Human Events in 2009.

17 posted on 10/17/2011 11:20:59 PM PDT by oldbill
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To: oldbill

Missing hyper link - it’s here http://www.humanevents.com/article.php?id=33821


18 posted on 10/17/2011 11:22:50 PM PDT by oldbill
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