Reply #28: flippers were not the problem, speculators on new homes somewhat

[gasperc]

but really the underwriters, appraisers and lenders that approved so many toxic loans. Teased rates that buyers could never afford when rates go up, cash out loan above the home value, inflated if not fraudulent appraisals, alot of multi-factiodal bad, bad things kept happening. Brokers looking the other way and focusing on their commission, doctoring applications so that applicants could "afford" the home.
Speculators that bought new homes which they quickly tried to flip at a much higher price because "demand" was so hot. But was it hot because speculators were flooding the market or was there true demand, and when the speculator couldn't sell to the next speculator is that when the bubble popped? That's why tax law that forces people to stay in a home at least 2 years or pay a big penalty or other techniques are very useful to try and ward off this kind of shit.

But I agree, flippers that fixed up properties and sold them at market value aren't at fault here.