All you have done is identify two phenomena, the housing crash and the increase in renovation loans.Lively
More new science by Jim Ryan
The failing school systems across the planet, due to government control, fail in the most important way and that is, to teach how to think for oneself.
The gov teaches A B C's and 1 2 3's, it teaches what to say and what to do. It teaches what not to say and what not to do.
Most of the housing bubble and fall were not due to lending to those who couldn't afford it, but it was due to the group think, taught all throughout school and work.
I'll bet none of you know what it was.
If you are able to think for yourself, it should be very easy to figure out, especially in hindsight and knowing that the rise and fall of the housing industry was due to group think and action.
The housing fall came not from the bad loans, but rather from the good loans. The good loans were the ones that borrowed money to renovate their homes. There were quite a number of tv shows touting the money to be made by renovation, coupled with politicians, realtors, home improvement stores, gov and more, making money by creating the schools, follow the leader mentality.
Want to provide evidence of a link that is more compelling that the effect of providing loans at low interest rates to people who could not afford them, and underwriting them with increasing equity?
There - got my fruitless post of the day out of the way.