Maybe you remember a little housing bubble that was fueled by cheap money, no doc loans and a huge wave of subprime buyers that over reached for the American dream of owning their own home.
The end result was a massive increase in the price of real estate and that was followed by an even deeper dive in the prices of the same asset class. This also spurred on the Great Recession.
Fast forward a number of years and we have Wells Fargo (WFC) looking to get back into lending to subprime.
Does this mean the bubble is coming back?
Does this mean that we should buy / sell WFC?
Let's have a big discussion about what this could mean for earnings and home prices in the comments below -- I think David Bartosiak will kick things off!
Read the analyst report on WFC
Zacks Investment Research