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Wednesday, June 30, 2010

The chasm between foreclosure and hanging-on could be academic

A recent newsletter from Iconoculture led me to a story from the New York Times, which suggests that people who were good at math may have been less likely to lose their home in the recent burst of the real estate bubble. The basis for the story was a study from Columbia University.

Implications: Were “creative mortgages” more attractive to people who didn’t really understand the ramifications of the math? Were alternative solutions too difficult for some folks to understand… leading them to believe that foreclosure was the only way out?

There is a lot going on behind this story… points worth pondering as we all try to learn from history, rather than repeat it.

Mike Anderson

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