[lotsofpulp]

> Most don't sell, but a few do - and thats all you need to make the basis of a new market price.

That seems like an elementary mistake for a buyer/lender (who would be appraising the property for use as collateral). Unless the lender has a too big to fail guarantee where everyone but the taxpayer wins as long as a plausibly deniable deal is made.

As an aside, the linked article has no substance to support its theory.

[throwup238]

The banks don’t care because they package the loans up as securities and sell them to investors. The investors don’t care as long as they’re packaged up with a bunch of other healthy mortgages.

This was one of the causes of the ‘08 financial crisis.