"In fact this was great news for young people in terms of their ability to buy homes."
Those paying attention also know now why the high leverage and lack of diversification in housing makes this an unsuitable investment for most of them. For most young investors, if their stock broker had sold them this investment instead of their real estate and mortgage brokers, they could have sued and recovered for selling them an unsuitable investment. They now have the option of avoiding the risk of being buried in an underwater mortgage or filing bankruptcy like their slightly older friends and siblings. They also know that nothing has been done to protect them from financial industry fraud and that large financial institutions and their minions are immune from prosecution for defrauding them. Too bad their slightly older friends and siblings didn't have this kind of advanced knowledge. Hopefully they'll heed the warnings and invest more carefully. - Perplexed
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