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A crisis built on greed

July 28, 2007

Re "Foreclosures in state hit record high," July 25

Why anyone would be surprised by the growing number of foreclosures is beyond me. Years of unchecked, artificial inflation of housing prices made homes unaffordable to average Californians or drove them to suspect financing options. This is less a reflection of a changing economic climate and more an end result of a period of unbridled greed that showed no concern over whether home buyers could really carry the debt incurred. Unfortunately, there will be an effect on the economy as more people are forced to quit their mortgages because half-million-dollar loans absorb too much of a normal middle-class income.

If the real estate industry had tempered its feeding frenzy and houses only jumped up by 100% (instead of 300%), there would be no crisis now. People would be able to buy a home and still have money left over to live on.

David D. Manos II

Lancaster

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