Monday, October 6, 2008

Home ownership and the financial crisis

In the Wall Street Journal, an Australian says that not everyone should own a home, and explains the link between owning a home and the current financial crisis. She brings up a very valid point, and it's certainly worth a read. A lot of economists, in analyzing the financial crisis, having been showing rent-to-own ratios (or whatever term they happen to use) from the housing industry--this is very likely what's at the heart of those graphs. (h/t Mankiw)

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