This is an incredibly insightful article, from Michael Lewis, the author of Liar's Poker and The New New Thing, and other great books about the world we currently know.
This is so telling... Michael Lewis is such a great writer. I've known for years that we weren't facing a housing bubble, we were awaiting a Wall Street implosion!
The perfect storm in real estate had come and passed by 9/11: people sold their tech stocks and had money to invest; interest rates dropped and people refinanced; and then, realizing they could afford more, people bought up. The natural progression in the market worked its way thru by early 2001. After 9/11, there was no more natural room for the market to rise, but Wall Street had a problem: where to put the profits from all that tech stock activity? Their solution: create the sub-prime mortgage market and jump start the stalled housing economy.
Comments(0)