Re: [A-List] Housing Bubble

["viveka" <kaliyuga@xxxxxxxxxxxxx>]

NEW YORK - There is a sharp debate over whether there is a bubble in
> the U.S. housing market generally or in certain localities, or whether
> there is a bubble at all. But the past two days have brought fresh
> warnings that home prices are unsustainable.
>
I'm just waiting for that last linch pin to dislodge and unleash a torrent
of grief.  I just read today, for the first time I can remember in a
business related website, a cautionary note to investors and issuers of
mortgage backed securities - and mention of the "bubble."  I would only add
that these days people are more likely to walk away from their homes when
they have, in reality, nothing of their own money on the line, having long
ago cashed out their equity in the property.  When it turns out they owe
more than they own as values deflate, they'd be stupid NOT to walk away.

M