A recent U.S. News and World Report is illuminating about the basics of economics (Dec. 24, 2007).
"We should have walked away sooner and quit selling to some of them," one president of a large home building company admitted.
And what an admission that is!
There is concern about the housing industry (especially out West here). And there are many answers to the question "why?"
Of course, it is easy to read the above quote and say, "hey, there is the answer: greedy builders!" But the builders' greed can only make an impact if the buyers are greedy.
The article notes: "Approved for 100 percent financing by Richmond American's mortgage arm, the 27-year-old didn't even have a job at the time." Why did she apply if she had no ability to pay?
All within one article, the relation of morality (greed) to economics (low house prices) is complete. Hopefully, this article will be read by more Americans and their education will then be complete.