[betterunix2]

...so low- and middle-income people are not buying their own homes under that system, which is exactly what I said. What is the disagreement here?

You say that interest rates are not higher, but that is a meaningless statement if people do not generally buy their homes on credit. Low- and middle-income Americans typically buy a home using a mortgage, and credit scores are an important part of that system.

[pbak]

My opinion point is that maybe if the US tried to do old style approach to home ownership, old fashioned banking, it wouldn't need that many artifices like rating agencies. Why I think that:

Your position is that the lack of a well informed credit market would make interest rates high, precluding acquisition of houses, hence the need for rating agencies.

My position is that truthful, complete information is enough to keep rates low, a market for that information is not necessary for assets which are not liquid (houses, mortgages). Swiss mortgage rate oscillate between 1-1.5%, depending on your financials.

Absolutely everybody buys houses and buildings on credit in Switzerland, due to huge tax deductibles. Those who don't are a rounding error around 99.9%, mainly due to some rare people's estate planning triggers.

Selling cheaper houses and apartments at lower prices has been repeatedly in the last 20 years (as low as a third of the usual price range). They doesn't sell.

Swiss are conservative, they tend to like long term investments with low degradation risk, regardless of current market price levels. Hence high prices, because they want high, long lasting quality.

Again nothing to do with credit information markets.