' Moral: Substitute housing for monkeys. As the winter of the US economy arrives, you still have the house you had before the price was bid up. Now that prices are falling back down, who has your savings?'
I have to disagree that that this is a valid annology for the mortage crisis.
The people who lost money are
The secondary mortgage bond holders
Those who had equity in the house and lost it because they could not pay the increase variable mortgage rate.*
Those who can pay the mortgage but are selling into a falling market at less than they paid for it.*
* - This is the example of where actual savings could said to be lost. But as we on this board know for proper analysis a portion of the equity would need to be equated to market value rent.
Those that who have not been financially hurt are:
Those who are not selling there home (they may have an unrealized profit or loss)
Mortgage bond holders who did not issue or buy high risk mortgages.
Those who did not have any equity in their home and lost it
Those who benefit from the mortgage crisis
Those looking to buy a home - lower prices
Those looking for a mortgage - lower interest rate
Borrowers in general - lower interest rates.
A pretty poor annology from my point of view. In the mortgage crisis the "con man" got hurt as did some (not all) of those who can not pay the increased interest rates.
Sometimes death is not as tragic as not knowing how to live. This man knew how to live--and how to make others glad they were living. - Jack Benny at Nat King Cole's funeral