I’m not a financial wizard, and I sometimes feel naive and ill-informed when I utter my bewilderment at the state of the housing market the last ten years. I don’t get how people can afford half a million dollar homes on typical American salaries. There aren’t that many people making $400K a year! The article linked below is scary, and if you believe it, validates my bafflement.
The bigger problem is the theory that the housing market has propped up much of our economy during this bubble. People felt safe going into debt because their homes were appreciating so fast. We may be in for quite a ride.