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Interesting that two years before the main crash was triggered, this article went down and identified almost all of points that led to it from a housing perspec
by araes 12y ago
Interesting that two years before the main crash was triggered, this article went down and identified almost all of points that led to it from a housing perspective by looking at one of the more extreme housing markets in the US.
- Prices disconnected from fundamentals
- Risky "home equity loans"
- Extreme use of leverage
- Surplus of speculators
- Trouble at Fannie Mae and Freddie Mac
I wonder whether similar "canary in the coal mine" approaches could be used for other large market or societal shifts in the US?
- muzz 12y agoAgree with most points, except Fannie Mae and Freddie Mac had their smallest market share at that time, as private lending was taking market share (and as we later found out, was driving the subprime lending).