An Artificial Market

Was the housing market of 2000-2005 similar to the dot com era? Some analyst think so. The reason: the disparity "between incomes and home values".

In the last five to seven years home prices in the US have doubled, and in some areas quadrupled, while the median household income decreased by 2% to $48,201 since its 2000 value of $49,201, reports the Economic Policy Institute.

You might be wondering right now: How can we afford more home with less money? My personal opinion is that the lenders got together and created lenient guidelines to let anyone buy a house and get into exotic loans that a typical consumer would not understand. Only in America is this possible.