We did a poll recently where Greenspan was the clear victor. However, there are many suspects:
* Greenspan
* Mortgage brokers
* Realtors
* Appraisers
* Speculators/Flippers
* Human behavior
* China
* Bush
* Builders
I could make an argument for each one - meaning in my book, they all contributed. In the end, #1 with a bullet is the speculator/flipper crowd.
Here in Phoenix, these locusts descended about a year ago and bought every property in town (seriously, every property). So there were no listings. This created panic buying, with locals competing with investors. And 55% appreciation in one year.
Then the locusts (the pump-and-dumpers) fled around September, although some are still trying to get out now. The locals still haven't figured this out, thinking their houses TRULY are worth 55% more than they were last year at this time.
Oh, won't they be surprised.
So, my answer for who do I blame for the housing bubble - it was the flippers that caused the bubble, and it's the flippers who made it pop.
December 11, 2005
Reader question: Who do you blame for the bubble, and why
Subscribe to:
Post Comments (Atom)
6 comments:
it's flippers, but greenspan gave them the low interest rate fuel they needed, mortgage bankers gave them the loans, appraisers fudged their paperwork, and realtors guided the way
and americans gleefully went for the ride
Shakespeare said it best.
"Look not to the stars for the trouble lies within yourselves."
Human nature, fear and greed is the reason for the bubble. No one, including Greenspan, forced anyone to take a out an irresponsible loan or buy more than they could afford. It's the same thing that caused the stock bubble.
The fault, dear Brutus, is not in our stars, But in ourselves, that we are underlings.
Julius Caesar, Shakespeare
Yesterday the bird of night did sit,
Even at noon-day, upon the market-place,
Hooting and shrieking.
Julius Caesar, Shakespeare.
Who are those birds of night Hooting and shrieking?
Hey I agree 100% agree with the last few comments. This blog has great opinions and this is why I continue to visit, thanks! ##link#
Post a Comment