Edmund L. Andrews writes that nobody duped him. He duped himself. He had covered all sorts of financial meltdowns as an economics reporter for the New York Times, but when he bought a home in 2004, he thought he could beat the odds. "Everybody had a reason for getting in trouble. The brokers and deal makers were scoring huge commissions. The condo flippers were aiming for quick profits. The ordinary home buyers wanted to own their first home…"
Over the past two years, the United States housing market and related markets have lost $12 trillion in value. One out of eleven home mortgages are delinquent. One out of six homes are under water, meaning that owners owe more on them than they are worth.
In 2009, expect three million American home owners to lose their homes to foreclosure.
Andrews writes that as he began to drown in debt, he learned ways to borrow even more money and boost his credit rating at the same time.
Edmund is proud that he’s outlasted two of his three lenders.
He writes that free markets can become corrupt and self-destructive. Tom Sowell points out in his book the mortgage meltdown that the meltdown was caused overwhelmingly by bad government policy, not by the corrupt of capitalism.
How did it become the received wisdom that this mortgage meltdown was the fault of capitalism?