I have been busy the past two days with buyers and a new listing or two … here are a couple of good bubble links …
NYTimes – thanks to Curbed for the heads-up (registration required) – go here for a password.
“So far, the mortgage-backed market has generated cash and profits galore. Someday, however, someone will lose money. No one knows who, when or how much because housing has never been so frothy, risky mortgages so ubiquitous or the market in which they trade so vast.” That said, the industry should still be regulated somehow, someway.
Volokh – The concern, as I understand it, is that people who have interest-only loans (for instance) are going to be hurt if home prices fall (although it is not clear why they would, if everyone is adopting the new mortgages–but I digress). The idea is that if housing prices fall, and if they have to sell their house, they will be forced to come up with a big wad of cash to make up for the shortfall. And so these exotic mortgages are said to be “bad.” Now here’s what I don’t get:
This is a good read, albeit quite long.
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