| HappySqurriel said: This isn't a problem that was caused by the Democrats or the Republicans, this is a problem that was caused by both the Democrats and the Republicans ... For decades there has been a movement towards making credit easier to access by both the government (through easing regulations) and private industry (by changing underwriting principles) which has resulted in most assets being overvalued. As a result of this, home prices (and other assets) skyrocketed in price and they became (much) riskier investments and the risk of the investment was hidden from the people who were buying them. Basically, how did we move from a time (or grandparents generation) when you bought a home for 25% down and 35% of your take home income to a time when you can buy a home for -30% down and 60% of your take home income? This didn't happen over night, it took 50 years and dozens of governments. |
Well said.
