Thousands of home equity loans made in the peak years of the housing bubble are just starting to reach their 10th birthday, which for many borrowers will bring very bad news.
Between the stock market, bitcoin, and tech IPOs, today everyone seems in a race to spot the next biggest asset bubbles readying to pop.
The term “asset bubble” indicates that there is a marked, noticeable divergence between the market price of an asset and its fundamental value. In other words, something that people store value in – a coin, a house, a share of stock – is valued much, much higher than the thing itself could possibly be worth.
This is a syndicated repost courtesy of Money Morning. To view original, click here. Reposted with permission. Who could forget the subprime mortgage crisis of just a few years ago? If there’s one good thing that came out of that nightmare, it’s that we – borrowers, lenders, financial institutions all – learned that securitizing bad…