The Recession Of The Housing Bubble

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The lessons we should have learned should include the fact that we were warned and paid no attention. Folks like Professor Schiller began warning us of the housing bubble starting as early as 2000, he was followed by G Edward Griffin and Jeffery Robert Hunn and they were followed by many others. The point being that we did know and could have avoided at least some of the pain; and we also could have heeded the lessons of history that the great depression showed us! In early 2006 President Bush said…”If houses get too expensive, people will stop buying them.” What happened in a nut shell was in March of 2007 housing prices fell and home owner’s equity was wiped out, if they had a mortgage it was often more than the home was now worth.…show more content…
Investors were making a killing on these foreclosed homes no one knew what to do with! While all of these homes had been being built there was also a great need by poorer folks who needed housing, but could not afford to purchase a home. There were great long lines for apartments and no one was interested in building apartments. Many of the investors had homes they did not need to live in themselves and so they are willing and happy to rent them out to those folks who could not afford to purchase a home and could not find an apartment to rent. So to recap: The investors are getting rich off the cheap homes they have purchased, would be apartment renters are now moving to the suburbs and living in family style homes they are renting from the investors; but what has happened to the home owners’ who have been displaced from their homes? Well the displaced home owners’ began to get creative. Many went back to the old tradition of multi generational housing. Adult children found they could once again live with their parents and their parents had the time committed to having a good credit rating so home ownership could once again be accomplished in this way. Some went to house swapping and this also worked well because the millennium adult children would be looking for a larger home for a growing family and the baby boomer parents would be looking to downsizing as they would now need less space, therefore
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