Mr Mortgage: Engineering the Housing Bubble Through Monthly Payments

"I wanted to actually 'see' the effects that exotic loan programs had on home price appreciation and I believe this chart, together with my written 'bubble-years event log' below, tells quite a story. This simple visual clearly demonstrates how 'low monthly payment' engineering through the creation of exotic loan programs was almost exclusively responsible for the major housing bubble in CA. If you substitute the CA data with data from your state, I am sure it will look similar. Recently, Greenspan said exotic loan programs were not responsible for the bubble prices. I think he is mistaken."