tag:blogger.com,1999:blog-5880610.post7061608054366031447..comments2024-01-13T18:57:18.243-05:00Comments on Information Processing: Housing bubble: dynamics of a bustSteve Hsuhttp://www.blogger.com/profile/02428333897272913660noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-5880610.post-56536257736693458792008-02-16T12:07:00.000-05:002008-02-16T12:07:00.000-05:00When did the rapid rise in housing begin? Circa 1...When did the rapid rise in housing begin? Circa 1997 when we had a change in tax treatment of housing. Is this a coincidence? I think not. We altered a market. Why did we relax sub prime lending? We had a congressional mandate. <BR/><BR/>Yes lenders have played fast and loose but SO HAVE BORROWERS.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5880610.post-48686499891683730092008-02-12T22:39:00.000-05:002008-02-12T22:39:00.000-05:00Actually that market is quite efficient :)30Yr bon...Actually that market is quite efficient :)<BR/><BR/>30Yr bond price change with 3% yield drop grows ~50%... Not mentionning yield drop from 18% in 70's... <BR/>Equivalently, psychologically, ppl care more about their "monthly nut"<BR/>and less about TOTAL debt. Especially in the rising price environment. So if one can afford bigger, better house for the same $1000, one moves there emptying his Anonymousnoreply@blogger.com