Wednesday, November 21, 2012

Some Things Were Obvious

I didn't know everything about the housing bubble, and early on I didn't know anything about the crazy financial products it was spawning (or vice versa), but one little thing was obvious to me. Not enough people in this country make enough money to afford houses at those prices.

Thank God for that, because his blog, Calculated Risk, has been an invaluable and influential read for numerous reasons.

For one thing, it's always been right. In its early days, when we all started reading it, it was way ahead of the curve in terms of warning about the housing bubble, horrible bank lending practices, and generally the economic collapse. From his perch in Newport Beach, CA he could see first hand the people taking out loans worth 10x their income, filling their Inland Empire garages with Harleys and Boats that they obviously couldn't afford.