Looking at the relative prices of buying and renting homes in Silicon Valley, Manhattan and a few other places is enough to make you wonder whether parts of the housing market are still due for a crash. To consider that question in more detail, the author had a conversation with Mark Zandi, the chief economist at Moody’s Analytics, which provided much of the data for his column:
[Link to Is Another Housing Crash Coming?]
The Crisis of Credit Visualized from Jonathan Jarvis on Vimeo.One of the best explanations of the current credit crisis. It shows how ordinary homeowners defaulting aren’t solely to blame and the problems are systemic tracing back to the lowering of the Fed rate and repeal of the Glass-Steagall Act in 1999 that allowed creation of mortgage-backed securities. But I’m no economist and reasons are far more complex that I could even begin to explain here. The sociological impacts on the neighborhoods however are only beginning to show with abandoned homes that are only making the problem worse.