BluegrassForeclosure.com

The Columbus Dispatch had an interesting article that the recent boom and bust was not a housing price bubble that burst, but rather a credit bubble.  Credit became too easy to get and so more and more consumers went after the home of their dreams, knowing full well that they wouldn’t be able to afford the payments.

This makes sense to some degree.  Houses are still being bought and sold, even today.  Albeit, for much more reasonable price.  Things are still moving.  Credit can still be gotten by individuals.

Also, this particular article went on to discuss how much value homes in the U.S. have lost since 2006.  According to the Federal Housing Finance Agency (there is an agency for everything), estimates that homes have lost value equal to $4.2 trillion.  That’s a pretty big number.

With that much value lost, you make the call, was it a housing bubble or credit bubble?

For more on the article, click here.