by Calculated Risk on 1/16/2023 10:38:00 AM
Today, in the Calculated Risk Real Estate Newsletter: The Housing Bubble and Mortgage Debt as a Percent of GDP
A brief excerpt:
First, from February 2005 (18 years ago!):
Many homeowners have refinanced their homes, in essence using their homes as an ATM.It wouldn’t take a RE bust to impact the general economy. Just a slowdown in both volume (to impact employment) and in prices (to slow down borrowing) might push the general economy into recession. An actual bust, especially with all of the extensive sub-prime lending, might cause a serious problem.
And a serious problem is what happened!
There is much more in the article. You can subscribe at https://calculatedrisk.substack.com/