Everything I've read about the housing bubble tells me it wasn't having the bubble itself that was the problem, but the fact that it was overinflated by bad bond ratings and a sneaky investment scheme that encourage poor loans. Is that wrong? Was that not regulated out? Is it not possible to have a healthy booming housing market?
Yeah sure, provided the demand is there to create it. The question is, does America really have enough demand to raise housing prices significantly?
Well, if demand and prices are growing despite Dodd-Franks regulations against the mortgage market being in place, then... yes?
The problem is that more and more wealth is concentrated in fewer and fewer hands. It was true before the Great Recession and it's even more true now.
A handful of rich people plus some credit extended to some of the vast number of poor and near-poor people does not make a healthy economy.
