> prohibitively expensive homes that every one could afford
erm. I _think_ you meant that the people were borrowing more than they could afford to buy overpriced homes. But it sounds like you were saying that everyone was fabulously wealthy and homes, though not cheap, were affordable.
Exactly right. I meant people were borrowing above their level. A credit crunch would make everyone live within his or her means. Or rather, make it more likely that they would. I think people would still find some way to get things they should not have anyway, but it might not be as systemic.
erm. I _think_ you meant that the people were borrowing more than they could afford to buy overpriced homes. But it sounds like you were saying that everyone was fabulously wealthy and homes, though not cheap, were affordable.