A speech delivered by Charles Evans, President, Chicago Federal Reserve, August 24, 2010 in Indianapolis, Indiana.
“…homeownership is only good for families and communities if it can be sustained. Home purchases that are very highly leveraged or unaffordable subject the borrower to a great deal of risk. Theres no guarantee, as weve learned recently, that prices have to rise. Moreover, even in a strong economy, unforeseen life events and risks in local real estate markets represent vulnerabilities for highly leveraged borrowers.”
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