Sure, headlines get our attention. Two years ago, putting the word “Bubble” in your title got you lots of hits. This year the headline word most likely to get eyeballs is “Depression”. Well, this article has both in it…and it makes some sense…

But housing expenditures in the U.S. and most of the developed world have historically taken about 30% of household income. If housing prices more than double in a seven-year period without a commensurate increase in income, eventually something has to give. When subprime lending, the interest-only adjustable-rate mortgage (ARM), and the negative-equity option ARM were no longer able to sustain the flow of new buyers, the inevitable crash could no longer be delayed.

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From Bubble to Depression?