The housing bubble's silver lining

THE ONCE-buoyant housing market is clearly in trouble. Last year, housing prices around the country fell for the first year since the Depression. In Southern California, one of the epicenters of the housing and housing-credit bubble, the pain has been acute. Local subprime lenders such as Ownit Mortgage Solutions in Agoura Hills and New Century Financial in Irvine have filed for bankruptcy protection. MortgageDaily.com estimated that 12,000 mortgage jobs have been cut in California since January 2006. Foreclosure rates are rising.

By Daniel Gross

May 20, 2007