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One of an endless stream of academia forensics after the fact. Another argument is that it was wealthy house flippers who capsized the market and not poor peop
by olivermarks 9y ago
One of an endless stream of academia forensics after the fact.
Another argument is that it was wealthy house flippers who capsized the market and not poor people being given large loans they couldn't repay.
https://qz.com/1064061/house-flippers-triggered-the-us-housing-market-crash-not-poor-subprime-borrowers-a-new-study-shows/ https://qz.com/1064061/house-flippers-triggered-the-us-housi...
- wmil 9y agoAt the end of the day most of the theories aren't exclusive. It takes a lot of people to create a global economic disaster.
- mannykannot 9y agoTrue, but this article is trying to narrow the range of causes.
- prostoalex 9y agoThe article just states the flippers were "those with credit scores in the middle and top of the credit score distribution", not necessarily wealthy. A wealthy flipper, e.g. a value-add REIT, would not generate as much debt in the first place (as they can just utilize their own bank account) and would be less likely to default en masse since they have spare cash and can wait out the downturn in the markets.