Are we heading for another housing bubble?Submitted by dherik on Fri, 02/22/2013 - 00:45
A housing bubble is a rapid increase in the price of housing caused by factors such as low-interest rates and government mandated loan requirements. The government creates artificial demand, demand that without government intervention would not exist, entrapping buyers who cannot afford the expenses of owning a house. Bankruptcies start, prices fall and the owners find themselves with a now toxic investment. This snowballs into massive bankruptcies of lending institutions, relative industries suffering and the corresponding unemployment.
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