> No mortgages = Detroit. The end result of this idea is not pretty.
The lack of mortgages did not cause the collapse of Detroit. The causation runs the other way.
The collapse of the auto industry led to the collapse of housing prices in Detroit, which in turn led to the collapse of the mortgage market. Who wants to issue mortgages for houses that are dropping in value?
The lack of mortgages did not cause the collapse of Detroit. The causation runs the other way.
The collapse of the auto industry led to the collapse of housing prices in Detroit, which in turn led to the collapse of the mortgage market. Who wants to issue mortgages for houses that are dropping in value?