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The Housing Crisis, Demographically

January 21, 2008

Atlantic Monthly has a great piece on how the subprime mortgate market crash has affected the U.S. demographically. Here is a teaser:

At first, the subprime crisis stung two groups in particular—people of modest means who’d gotten in over their heads, and a wealthier crowd, people working at hedge funds and investment houses, who’d trafficked in the first group’s debt, fueling the market for exotic, unstable loans. One might find a measure of rough justice in the travails of the latter group (45 residences in Greenwich, Connecticut, home to many hedge-fund operators and investment bankers, were in foreclosure in the third quarter of 2007). But the ripples from the subprime crisis are now beginning to affect nearly everyone. A cooler housing market chills construction, consumer confidence, retail sales, and all the rest.

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2 Comments leave one →
  1. January 21, 2008 11:54 am

    Yep…Unwise folks putting themselves into silly loans and now they expect the government (nee us taxpayers) to get them out of it.

    I don’t know what it was they didn’t grasp. You can have a 1% loan and the ARM rates so low that you have no clue they will go up when the initial period is done. Better to rent, build a good credit score and buy a modest home, pay it off and then upgrade before doing something crazy like this.

    …and the bad thing is, I will get punished for being a wise spender and building good credit by having my tax money going into some fund to rescue these fools who thought they were one-upping everyone in the first place.

    What a great country! *L* Okay, that line is a bit dated.

  2. January 26, 2008 10:47 pm

    My only thought would be that we need to be addressing the predatory lending that has been occurring for years in low-income areas.

    That is taking advantage of people who, like the previous commenter pointed out, ‘don’t understand.’

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