Thursday, July 10, 2008

The Single Best Paragraph Yet Written on Inflating the Housing Bubble

Meanwhile, China and other big exporters to the U.S. had to find something to do with all the dollars we sent them. Many of those dollars flowed back into U.S. mortgage securities. That lowered the cost of home loans further, helping more Americans buy houses. We then needed more Chinese-made stuff to fill those closets . . .

Jame Hagerty, Wall Street Journal, July 9, 2008

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