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Comment Re: is anyone really surprised here (Score 1) 201

Prices are set at the margin, so any new and additional borrowed capital chasing the existing market-share will catalyze a boom in prices.

Where the banks failed is in assessment of borrower's capacity to service. But rising prices combined with the government-sponsored protection that is the mortgage, meant that moral hazard was the order of the day.

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It's a naive, domestic operating system without any breeding, but I think you'll be amused by its presumption.

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