Real Homes of Genius
3rd October 2008
Steve Sailer is always worth reading.
One off the things I’ve been trying to explain is that the late mortgage bubble was so crazy because, unlike most bubbles, it was not a bet on the rich getting richer (as in the Internet Bubble). Betting on smart young people to invent new Internet stuff wasn’t nuts — they actually did invent a whole lot. The nutty part was that there weren’t many ways to use an open system to achieve a quasi-monopoly and earn above normal returns on investment.profit from the inventions.
But the housing bubble was a bet on the increasing ability to pay of the part of American society — the working class and lower to middle-middle class, primarily — that has been getting the fuzzy end of the lollipop since about 1973.