送交者: Enlighten 于 2005-5-11, 16:39:03:

回答: Can anybody help with the economic problems here? 由 fengcu2000 于 2005-5-11, 16:22:01:

When housing price declines, it is much cheaper to rent than to own. So people will tend to sell the house and rent. If they can't sell at a good price, they will choose not to pay the bank loan, unless they have put a significant amount of down payment on the house.

• Theorically, that can be an explaination. - fengcu2000 (452 bytes) 2005-5-11, 17:12:48
  • You are right. Houses are less liquid than stocks. - Enlighten (221 bytes) 2005-5-11, 17:22:06
    • That's becuase spepulators neither resell - fengcu2000 (140 bytes) 2005-5-11, 17:37:42
      • Give you a scenario - Enlighten (272 bytes) 2005-5-11, 17:48:13
        • Yes, if I can file bankcrupcy and - fengcu2000 (179 bytes) 2005-5-12, 09:46:16
          • A foreclosure is not as severe as bankruptcy. - Enlighten (386 bytes) 2005-5-12, 10:17:08
            • Right, it depends on the cost/benefit trade off. - fengcu2000 (0 bytes) 2005-5-12, 10:27:31

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