Borrowers were told not to worry about paying the ever-mounting debt, because house prices would keep rising and they could refinance, taking out some of the capital gains to buy a car or pay for a vacation.
(0
Reviews)
In "The Great Divide," Joseph E. Stiglitz discusses how borrowers were reassured about their increasing debt levels by the belief that housing prices would continuously rise. This optimistic perspective led many individuals to feel secure in their financial situations, thinking they could refinance their loans and access the value they've built in their homes to fund other expenses, like vacations or new cars.
Stiglitz highlights the dangers of this mindset, implying...
Rate the Quote
Add Comment & Review
User Reviews
Based on 0 reviews
No reviews added yet.
Comments will not be approved to be posted if they are SPAM, abusive, off-topic, use profanity, contain a personal attack, or promote hate of any kind.
More »
Today Birthdays
1910 -
Jean Anouilh
1936 -
Richard Bach
1975 -
Markus Zusak
1977 -
Jason Mraz
1910 -
Gordon B. Hinckley
1912 -
Alan Turing
1957 -
Frances McDormand
1940 -
Wilma Rudolph
1876 -
Irvin S. Cobb
1946 -
Ted Shackelford
1956 -
Randy Jackson
1974 -
Joel Edgerton
1942 -
Martin Rees
1943 -
James Levine
1976 -
Aaron Ruell
1894 -
Edward VIII