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Originally Posted by MarchHare
Can you provide citations to show that this actually happened? Obviously many people (poor and middle class alike) were buying homes beyond their means during the housing bubble, but I think your example is more than slightly hyperbolic. Even the greediest, most short-sighted subprime lender is not going to give a $1.5M mortgage to a family with a $40k household income.
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Like you said, obviously many people were buying homes beyond their means during the bubble.
Was it a $40,000 buying a $1.5 million dollar home? I don't have any hard evidence. But the $40,000 family was buying a home that they couldn't afford to make payments on.
Maybe it was a $350,000 home, or a $1.5 million dollar home. Either way the sub prime loans didn't help in the least bit.