/biz/ - Business & Finance

When it goes it's going to be bad. Current homebuyers are bag holders. What's going to happen when the asset bubbles pop and they lose everything?

Imagine someone making $45,000/year with a 600 credit score putting 3.5% down on a $250,000 tract house. That's a government backed subprime mortgage! They also have a car payment on a $30,000 Toyota Camry, student loans, and you know they have a few credit cards. This is the average American.

Don't forget about all the rental owners with 3-5 mortgages that they can barely afford.