You can now read 10 articles each month for free on

The Boston Globe


Nicole Gelinas

The end of the housing crisis

Although Hurricane Sandy is considered this election’s October surprise, there is another one: The national housing crisis, which has defined the national economy for the past half-decade, is over. That’s not an automatic boon for President Obama, though. Instead, it’s an illustration that politicians can’t fix everything. Some problems need time — and free-market forces — to fix.

The 2008 election was all about the housing bust. Americans knew they were in trouble as early as 2007, after housing prices had stagnated and then fallen for a year. They could no longer take equity out of their houses to keep up their consumer spending — a looming disaster for the economy, which depends on such spending. But few inside the Beltway noticed until fall of 2008, when falling home prices caused a financial crisis for Wall Street.

Loading comments...

You have reached the limit of 10 free articles a month

Stay informed with unlimited access to Boston’s trusted news source.

  • High-quality journalism from the region’s largest newsroom
  • Convenient access across all of your devices
  • Today’s Headlines daily newsletter
  • Subscriber-only access to exclusive offers, events, contests, eBooks, and more
  • Less than $1 a week