As Norris noted, the bubble wealth is gone, but the debt remains (still high on a historical basis). This was especially hard on younger households since they bought during the housing bubble.Calculated Risk
Housing bubble: The "Wealth" is Gone, but the Debt Remains
Bill McBride
3 comments:
All thanks to fiat funny money loans.
Thanks to control fraud and a criminogenic environment in finance due to lack of regulation, oversight and accountability, added to failure to regulate the quality of collateral.
No doubt that choosing to run a fiat regime has consequences that must be addressed in order to avoid gaming the system.
some people think that the monetary regime caused the crisis. Fallacy of false cause. It was abuse of the financial system, some that fell under best practices, some unethical and some allegedly illegal. Nothing that appropriate legislation, regulation, oversight and accountability can't handle.
As Bill Black observes, it was not so much lack of legislation and regulation but lack of oversight by regulators and absence of accountability after the fact, especially when the AG announced that laws would not be enforced against the large banks and their officers and directors.
Actually Bobby,
A large and equal distribution of new fiat to the entire population is what is called for both morally and economically.
Too bad your deflation loving Austrians did not come to that conclusion, huh?
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