ST Alpha - "Because of the low rates a lot of people bought homes that they couldn't really afford." (Reading a Post)

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In response to "well, they're going back up again, but they went down because of financial shenanigans, not because of low interest rates." by Reagen

Because of the low rates a lot of people bought homes that they couldn't really afford.

Posted by the lioulu with crappy mag (aka liioulu) Nov 23 '09, 18:23

And a lot of companies took advantage of that by offering loans to people they shouldn't have. The financial shenanigans were helped along by the rates and the housing bubble. They weren't separate.

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We had the same conditions in Canada without the same crash. Ergo: interest rates were not the cause. - Reagen Nov 23, 18:25 9
- Bad analogy on your part. - the lioulu with crappy mag Nov 23, 18:34 8
  - it's a perfectly applicable analogy. - Reagen Nov 23, 18:40 7
    - BTW way we didn't tighten markets we loosened them. - the lioulu with crappy mag Nov 23, 18:53 2
      - I'm aware - that's my point. It was the relative lack of regulations that caused it. -- nm - Reagen Nov 23, 18:56 1
        
        If you read my posts I also said that. there was more than one reason. there were many and I did say that. -- nm - the lioulu with crappy mag Nov 23, 18:59
    - No, it isn't because when gas is cheap, more people drive. And more accidents happen. - the lioulu with crappy mag Nov 23, 18:45 3
      - This is where your pathological need to disagree with me gets you in trouble. I said that. - Reagen Nov 23, 18:51 2
        
        As I said to begin with it was a bad analogy on your part. - the lioulu with crappy mag Nov 23, 18:55 1
        
        You're now in the position of disagreeing with me and agreeing with me at the same time. This is pretty impressive. -- nm - Reagen Nov 23, 18:57

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Because of the low rates a lot of people bought homes that they couldn't really afford.

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