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No one should be surprised, as the market for housing was highly inflated due to government (Fannie/Freddie/Community Reinvestment Act) distortion of the market.
May 26 16:18 pm
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All Comments by WillG »Home Prices Down 32% from Peak [View article]
Although I have written about this numerous times, it bears repeating that credit was too easily available, and that the lenders were attempting to spread the risk on loans they were being negatively incented to make.