Quote:
Originally Posted by onwebcam
When are people going to get it. THIS has NOTHING to do with people buying houses they couldn't afford. Sure it was a very small fraction of the problem. If you have houses increasing 10% a year and wages stagnant where do yo think that ends up? The real problem is and was derivatives/CDO/CDS. There are 1.4 quadrillion in derivatives floating around the world. This is the problem. None of these extremely rich folks/companies want to eat their loses so they are taking everyone else down.
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A lot of truth here. A friend of mine and I were talking about this the other day. I had read that the average wage in the US is $16 per hour. The average house in the US costs 180K (obviously both can vary dramatically depending on where you live, this is the national average.) At that rate the average wager earner cannot afford the average house. No good can come of that.
I won't be surprised to see the entire house market deflate and stay down for years to come.