ksh

Did Lack of Regulation Create the Subprime Mortgage Crisis?

I don't understand. Those borrowers of risky loans had always had a "way out" by selling or refinancing until this bubble so what caused the bubble to break? That seems to be the real issue. And what caused the bubble to grow so quickly? I moved to Florida when the values were crashing but I've lived in Ohio where there was never any rapid appreciation. I bought a home in 1993 for 179k and sold it in 2006 for 230k. That's just average appreciation. Yet why the values crashing in Ohio too? PS FYI Old Rick- you brought up the misspelled word of another but used the incorrect "to" ... it should have been "too" in your description of Greenspan's error.