One quick look and you will know.

Friday, February 27, 2009

http://www.usatoday.com/money/economy/housing/2009-02-24-bigloans_N.htm

Click on this link and then go to the bottom of the map of the US. Then drag the scrapper from left to right. You better sit down.

Anonymous said...: Not too surprising. Financial innovation + home price increases + potential home price appreciation. Apparently the uninformed masses believed that after getting burnt in the tech bubble that housing was the new safe bet (it *exists* right, what could ever be the problem?).

I was surprised that my area had such a high concentration of these loans though (Southwest).

Seriously, though, it seems that the root of the problem is that Americans are financially illiterate and unable to compare mortgage products sufficiently well. It was especially amusing to hear real estate promoters state blatant untruths about historical appreciation rates...

Of course the solution to this problem (and economic illiteracy in general) is to require some sort of economic curriculum. Perhaps ECU Econ can obtain a grant to start real business cycle macro courses in high school?

The real sad part here is that Obama is going to get all the credit when the business cycle turns. Because recessions aren't natural. Etc.; February 27, 2009 at 2:11 AM
Randall Parker said...: Dear Anon: It ain't turning any time soon especially with the ideas our president is perpetrating. This is the 1930s happening all over again. Moreover, this is NOT a real business cycle phenomenon. But I sure do like your ideas if you just say "business cycle macro courses..."; February 27, 2009 at 6:39 PM

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