Were The 90s Really All That Great?

There is another powerful dynamic (I’m sure more than one) that caused the 90s to boom and the next decade to bust.

The 90s opened with almost all home mortgages rock solid, thanks to strict mortgage standards. By the end of the 90s, standards were so loose that fully one quarter of all US home mortgages were substandard. Then the effects of the repeal of Glass-Steagall kicked in, allowing large investment banks to get in on the liar-loan golden goose. The boom became a bubble. By 2008, one half of all US mortgages were built on sand. A pull-back in home prices triggered a mortgage default crisis and the financial meltdown.

Some experts are warning that that particular boom-bust is beginning to repeat.

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