tag:blogger.com,1999:blog-6798074091942701235.post4200298623425968241..comments2024-03-27T11:08:31.557-04:00Comments on Can Turtles Fly?: What were the housing bubble areas in the US?Sivaram Vhttp://www.blogger.com/profile/06361276466660862882noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-6798074091942701235.post-48066261492136782062008-11-12T17:25:00.000-05:002008-11-12T17:25:00.000-05:00The snag is that parts of the US, particularly som...The snag is that parts of the US, particularly some of the ost bubblelicious states, are "no recourse" so a borrower/homeowner can walk away with no more damage then a hit to his credit score.<BR/><BR/>Imagine if you could walk away from your Ambac investment with a full refund of your purchase price, no questions asked. Would be tempting no? Especially if you could buy back at the current price... Intrinsic value be damned.<BR/><BR/>I think most people do not see a house as an investment, but very practically as a place to live. So, even when deeply underwater they will not walk because it involves moving, and who needs the hassle? <BR/><BR/>BTW treating your house as an investment/cash machine is the pahavior in part responsible for the current mess, so the more people see it as just a place to live the better IMO.Anonymousnoreply@blogger.com