The U.S financial crisis started in October 2005. The level of new home starts would have replaced the total owner occupied housing stock in 37 years. Much faster than desirable. Mortgage interest rates also went up in same month. In 2006 mortgage lending went on unabated, but housing values did...

In economic life, like in all walks of life, there are always winners and losers. The losers are the unemployed, often the young, the low-income earners, the individual households who lose their home due to repossession for non-payment of debt, the households who have no or a low savings level...

The U.S. housing market crash in 2007-2008 was not caused overnight by an over-supply of new homes that could not be sold. It was caused by the new money flows into mortgages ever since 1998. What changed in 1998 was that mortgage funds were not only used for building new homes at a price in...