This is a syndicated repost published with the permission of Confounded Interest. To view original, click here. Opinions herein are not those of the Wall Street Examiner or Lee Adler. Reposting does not imply endorsement. The information presented is for educational or entertainment purposes and is not individual investment advice.
The housing and credit bubble that began in 1995 sure took that air out of the housing market along with both US and European bank stocks.
Existing home sales have finally recovered to 2001 levels, thanks to tepid economic and wage growth since 2009,
Even existing home sales INVENTORY is back to 20o1 levels.
The cause of the big spike in existing home sales until 2005? The rapid and unsustainable growth in residential mortgage credit starting in 1995.
Even so, there are think tanks in DC screaming to ease mortgage credit again despite the damage done the last time we had a credit bubble.
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