Quote: (05-18-2013 08:55 PM)Dexter Morgan Wrote:
That's three tenants. And I've just given you a page of fundamentals why it may not be true. WE JUST LIVED THROUGH A PERIOD, IN 2006-2008, WHEN THE NEED FOR FED-INDUCED BUBBLE-DRIVEN HOUSING PRICES TO EVENTUALLY RETURN TO PRICING MORE IN LINE WITH FUNDAMENTALS WAS ***PAINFULLY*** DRIVEN HOME TO WHOLE WORLD. Were you asleep during this time? Are you Rip-Van-Cupcake??
The definition of insanity is doing the same thing over and over, and expecting a different result.
You are basing the bubble on loose credit. While that was a big contributing factor, you cannot also negate the banks and credit agencies bundling shit loans and selling them off with credit A ratings. Add to that the insurance purchased on those bad loans knowing they would default in mass, you got the shit storm we witnessed.