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Why do we have a housing crisis?

By
Real Estate Agent with Realtor w/The Kentwood Company at Cherry Creek

You think you know why the housing crisis began? Well, you probably know some of the more publicized lowlights, but chances are you don’t know the whole sordid tale.

The link below has the WHOLE story.

It will take you to an episode of This American Life, a weekly radio show that sent two reporters out to follow the trail of why banks were handing out $500,000 loans to people who clearly had no business signing up for them. The show lasts about an hour and I guarantee you will be enlightened by what you hear.

The show is called The Giant Pool of Money. You can listen for free. Better yet, support public radio and download it for .99. It’s worth it!

WARNING: This program has been rated “non-partisan” and safe for listening. :)

 

Karl Lueders is a Realtor with the Kentwood Company at Cherry Creek. You can visit him at his Web site, Karl Sells Denver, or by calling him at 720-971-8267.

Vickie Nagy
Coldwell Banker Residential Real Estate - Palm Springs, CA
Vickie Jean the Palm Springs Condo Queen

Interesting concepts ... that there were banks that would make no doc loans ... and buyers that would buy using a negative amortization loan.

Oct 23, 2008 07:21 AM
Richard Barbee
Realty Executives Assoc - Knoxville, TN

I think it is fair to say that foreign investment houses had confidence in the American economy and the service of lenders here.  By going for a quick buck and showing poor judgment, these unethical lenders, buyers, and refinancers have broken that trust.

The international community has lost financial trust in the U.S.   Wall Street, Countrywide, Fannie Mae, Barney Frank, the Greedy, Social-climbing Buyers, and more misused the available credit that was made possible by millions of European and Asian investors.

Oct 23, 2008 07:23 AM
Linda Lipscomb
Linda Lipscomb RE/MAX Lexington Henderson County TN - Lexington, TN
731-695-1118, Lexington TN Homes

Karl,

Interesting.

Very little trust in any market right now.

 

Oct 23, 2008 07:53 AM
Anonymous
Esther Maguire

Currently interning for an equity advising term.  This was such a wonderful resource in order to truly understand the housing crisis in layman terms instead of blotching up and hiding such facts with technical jargon.  Greatly appreciative of you sharing such resources.

Dec 03, 2008 07:12 PM
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