Economists say that high gas prices triggered the housing crisis in 2007 (2012)

High gas prices certainly preceded the housing crises, but good luck convincing anyone it caused.

Very subjective opinion ahead- High gas prices is probably this single most effective way to curb greenhouse gases and I am shocked that Biden and his climate Czar aren’t embracing it. As it stands, even prices doubling or tripling, I would conjecture that a very significant portion of Americans can make significant changes to their driving patterns at the great expense of a mere “minor inconvenience”. Carpooling to work and school, taking mass transit where available, planning errands/trips for efficiency, driving the more economical car in the family unit when no one else is using it (I.e. drive the wife’s wagon on the weekends instead of the big truck). A LOT more people can be driving motorcycles/ scooters. Complaining about high gas cost is almost a form of conspicuous consumption.

At least around city, most people do not think twice about fuel cost of running errands all over town, they just complain about the bi-weekly fill up. For one example, some families schlep their kids all over the city every day for a very packed schedule of events; carpool more or just don’t design up for such an erratic day from the first place. Don’t sign up for that basketball league with a daily practice on the opposite side of town from school. Don’t take as many YOLO trips up to Lake Tahoe or Napa or whatever… or at least pile in with other people to reduce the number unit cost.

Until people begin to reorganize their livelihoods and consumption patterns, then gas prices aren’t really too high, it’s just more than we are used to spending, and I’m not at all convinced an extra $100/mo at the pump is really that big of an impact for majority of folks to behave differently. We just complain instead.

(Caveat- Low income workers have a different story, but I anecdotally also don’t not see an embrace of more efficient transport means amongst low income population in my city. Late model luxury vehicles and large suvs and trucks remain very popular in low income areas. Gas cost is simply not a significant enough portion of the equation as it stands)

They are probably referring to then Senetor Joe Biden and his support for the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act, which substantially broadened the set of student loans that could not be discharged in bankruptcy.

Economists are never wrong. They just have “updated forecasts.”

I feel this. 2021-2022 has been insane as a person looking to buy a new house, car, and get kids into daycare. Luckily we already own a house with good equity, have a good car, and have childcare. But we’re looking at moving and upgrading a few of these things, and let me tell you. The demand for housing and vehicles is beyond anything I could have imagined. Houses routinely selling for 30-50% over list. Car dealerships selling new cars at $10k over MSRP because the two year old version of that car is selling for the price of a new one used.

If we didn’t have existing assets like a house or quality cars we could trade in I don’t know what we would do. Just having two good salaries, a lot of cash, and high credit isn’t cutting. You need assets.

From memory, people were getting large mortgages they couldn't afford once the teaser rate had expired (usually 1 - 2 years). The reason they were able to get these mortgages is because lenders were doing little or no due diligence.

This did coincide with a period when fuel prices were rising but, I think, this was more a case of 'the last straw breaking the camel's back' rather than a direct causation of financial distress.