Real Estate Bubble

Real Estate Bubble has been known all along, and shown by Japanese example in the last decade. Still, people are suffering from it even now. Stocks have been dropping like crazy recently. Why? Because a lot of people borrowing from subprime loan started to have difficulty in paying the mortgage. The difficulty comes from the misjudgement of real estate market, which is supposed to go up, forever. Forever? Are those economic elites stupid? Or are they simply trying to make money in any dirty ways they can imagine?

Look at United States Housing Bubble, U.S.' real estate market has been on the rise since 2001, like skyrocket. Subprime loan is for people without strong finacial capabability, starts from loan interest rate for first two years, then jumps to a high interest of more than ten percent. The mortgage of over ten percent interest rate is payable only if the market keeps going on, for twenty or thirty years. If so, the borrower can later be re-evaluated as a "prime" one and switch to a prime loan. The other way out is to sell it when the price rises high enough. Poor low income class! It is so obvious that the market can not be as good for long. Even two years are long enough for market to change dramatically from time to time. But they have to go for the high risk high return path, and keep their fingers crossed all the time. They are eventually the victim of capitalism machine.
American dreams are but for those who are lucky enough. Good luck only happens at a small possibility, even lower than that of traffic accident.