Comment on Subprime No-Down-Payment Mortgages Surge, “Shadow Banks” Dominate

Subprime No-Down-Payment Mortgages Surge, “Shadow Banks” Dominate

Some of the same characters that played leading roles last time. The value of the US housing market has ballooned to $26 trillion. In many markets, prices exceed even the peak of the prior house price bubble that blew up so spectacularly. This construct is weighed down by $14 trillion in mortgage debt, or about 76% of US GDP.

 

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