#1 Americans got better at matching their house purchases with their own future income. The statistical correlation between initial house purchase price and later income levels strengthened mightily, by 80 percent. The data suggest that deregulation and securitization were a key part of this shift.
The author is slicing & dicing her data to suit the point she is trying to make. MY data shows that the housing bubble was due to a collective mania that collapsed because it was insupportable. The bulk of the banking system is now insolvent due to deregulation and securitization combined with the unwise actions of their executives. |