The larger real estate industry could have reason to worry, particularly in an already sputtering market, as sub prime mortgages have grown to 16 percent of total U.S. mortgage originations, up from less than 5 percent in 1994.
When loans go bad, the spillover effect on housing prices can be significant.
Chicago-area home sales in the first two months of the year declined 12.1 percent from 2006; confounding analysts who were looking for the first small signs of a spring bounce but instead saw a market continuing to struggle.
So, the stock market may be near an all time high, but the pain to American families is just beginning. I fear we have only seen the tip of the iceberg.
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