This is pretty interesting to watch. Peter Schiff gave this at a mortgage bankers conference in Las Vegas. The funny thing is that everything he says is pretty darned basic. Well worth watching:
A couple interesting points:
- It was easier to get a house than it was to rent because the landlords actually checked your credit and income for a rental
- Home prices have traditionally tracked to CPI and only if homeowners kept them up
- Speculators got lots of homes and listed them all as "owner occupied" spread across multiple states
That was well worth watching. He really did take the extremely complicated mortgage crisis and broke it down into simplified, understandable concepts. Definitely a must watch.
Caleb
http://www.mefinanciallyfree.blogspot.com
Spooky! I like how he described the Subprime mortgage industry perfectly and how speculators were buying up property only to default on the houses when the housing market crashed and hundreds of thousands of houses went on sale. It’s scary how accurately it pinpoints our economic crisis we’re in now and he did it two years ago!
Great and worth watching.