Comments on: The Housing Bubble Started in 1979: The 3 Stages of the Housing Bubble. From Birth to Bust. Housing Collapse is 30 Years in the Making. http://www.mybudget360.com/the-housing-bubble-started-in-1979-the-3-stages-of-the-housing-bubble-from-birth-to-bust-housing-collapse-is-30-years-in-the-making/ Investing ideas for preserving wealth in a fluctuating market. Sat, 13 Mar 2010 01:35:24 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Jim McMillen http://www.mybudget360.com/the-housing-bubble-started-in-1979-the-3-stages-of-the-housing-bubble-from-birth-to-bust-housing-collapse-is-30-years-in-the-making/comment-page-1/#comment-2569 Jim McMillen Sun, 07 Dec 2008 23:05:51 +0000 http://www.mybudget360.com/the-housing-bubble-started-in-1979-the-3-stages-of-the-housing-bubble-from-birth-to-bust-housing-collapse-is-30-years-in-the-making/#comment-2569 I would say your time is a little off. The real change began in 1986 with the tax act that did away with deductions for interest on debts except for the first mortgage and the second mortgage. This was the birth of the home equity loan. Indidviduals shifted there debt to home equity mortgages to take advantage of the tax deductions. Also, another significant factor was the changes to the laws in 1982 after the S&L crisis. Interstate mergers in banking and S&L's became vogue. Banks were allowed to merge into mega banks. The variable rate loans ARMs came into existence. Of course this legislation was introduced by the Keating Five. The 1982 deregulation acts, the tax act of 1986 and the deregulation that occurred in 1997 under the bank modernization act are probably the most significant acts that led to the current day crisis. Another thing that happened that led to the process was the privatization of Fannie Mae in 1970 to finance the Vietnam war. This led to securization that began by packaging Mortgages loans ( Packaging loans) to sell in the stock market. After this began then auto loans, credit card debt and other loans were packaged to be sold in the market. In the 1990 the finance companies (the sub-primes) were packaged and sold and by the mid 1990's the finance companies were a hot product. They were either bought up by banks or became main stream banks. Interseting article it goes along with the reseach I have done. I would say your time is a little off. The real change began in 1986 with the tax act that did away with deductions for interest on debts except for the first mortgage and the second mortgage. This was the birth of the home equity loan. Indidviduals shifted there debt to home equity mortgages to take advantage of the tax deductions.

Also, another significant factor was the changes to the laws in 1982 after the S&L crisis. Interstate mergers in banking and S&L’s became vogue. Banks were allowed to merge into mega banks. The variable rate loans ARMs came into existence. Of course this legislation was introduced by the Keating Five.

The 1982 deregulation acts, the tax act of 1986 and the deregulation that occurred in 1997 under the bank modernization act are probably the most significant acts that led to the current day crisis.

Another thing that happened that led to the process was the privatization of Fannie Mae in 1970 to finance the Vietnam war. This led to securization that began by packaging Mortgages loans ( Packaging loans) to sell in the stock market. After this began then auto loans, credit card debt and other loans were packaged to be sold in the market.

In the 1990 the finance companies (the sub-primes) were packaged and sold and by the mid 1990’s the finance companies were a hot product. They were either bought up by banks or became main stream banks.

Interseting article it goes along with the reseach I have done.

]]> By: mike http://www.mybudget360.com/the-housing-bubble-started-in-1979-the-3-stages-of-the-housing-bubble-from-birth-to-bust-housing-collapse-is-30-years-in-the-making/comment-page-1/#comment-2568 mike Sun, 07 Dec 2008 23:02:25 +0000 http://www.mybudget360.com/the-housing-bubble-started-in-1979-the-3-stages-of-the-housing-bubble-from-birth-to-bust-housing-collapse-is-30-years-in-the-making/#comment-2568 Very good article. The idea that the housing bubble somehow jumped out of nowhere is ridiculous. The slow strangulation of the manufacturing base is something very few people connect to this bubble but it is a huge part of it. Love the spam filter BTW. Very good article.
The idea that the housing bubble somehow jumped out of nowhere is ridiculous.
The slow strangulation of the manufacturing base is something very few people connect to this bubble but it is a huge part of it.

Love the spam filter BTW.

]]> By: Jim McMillen http://www.mybudget360.com/the-housing-bubble-started-in-1979-the-3-stages-of-the-housing-bubble-from-birth-to-bust-housing-collapse-is-30-years-in-the-making/comment-page-1/#comment-2567 Jim McMillen Sun, 07 Dec 2008 21:37:20 +0000 http://www.mybudget360.com/the-housing-bubble-started-in-1979-the-3-stages-of-the-housing-bubble-from-birth-to-bust-housing-collapse-is-30-years-in-the-making/#comment-2567 Gramm did not introduce he bill in the House of Represenatives but rather the Senate. Gramm did not introduce he bill in the House of Represenatives but rather the Senate.

]]>