MyProps.org - E-mail Link

Home

Public Channels

Channel Contents

E-mail Link

Share this Link by emailing it to friends and family. Or return to link.

Link Information

Title:

Perfect explanation of the bursting housing and credit bubbles - must read

Description:

What I hope you will one day understand, is that housing prices cannot -- on a sustained basis -- rise much faster than wages without putting lenders in serious trouble. Banks have formulas indicating what a reasonable debt to income ratio is. These ratios have, until recently, been fairly stable over the years, mainly because the banks that survive are the banks that follow them. If you look at the ratio of home price/medium income over the 20th century, you find that while there is certainly noise over the years, all told it is fairly stable. Until recently, where it suddenly spiked hard. The reason why is very important, but for the moment just consider that it directly refutes your point that the brief correction is cyclical and not structural. Actually, it's the opposite. The ...

E-mail Information

*To E-mails:
(seperate by commas)

Optional Message:

Verify Human Input

*Enter the code below:

Fields marked with an asterisk *are required.