Categorize this as "docutainment." It explains the housing market collapse of 2008 with dry humor and aplomb. It was not difficult for a man with an expired bachelor's degree in statistics. I knew there was trouble when the radio public service announcements began back in 2003. "Home ownership in the US is at an all time high, but Hispanics and African-Americans are under- represented." Whoa! I talked to some of my banker friends, and they explained to me that a congress which grills ball players about alleged steroid abuse would not overlook an opportunity to investigate banks on charges of racism.
Banks began rolling credit card debt into mortgages in order to get the uncreditworthy into homes of their own, all the while warning the borrowers not to rack up too much consumer debt in the future. Naturally, once into the new home in a middle-class neighborhood, they'd buy Escalades, Bimmers, Volvos, and then buy fancy rims for the Slade, and sure enough when the ARM rate went up, out went the For Sale signs. It became clear that too many new homes had been built, too many mortgages had been sold, and a bubble formed.
The Big Short explains the gambling aspect of the bailout with a degree of humor that ought to scare the viewer. Ultimately, the taxpayers were put on the hook for a mere 5 trillion dollars. John Bird and John Fortune put a video on YouTube about the sub-prime crisis.
Banks began rolling credit card debt into mortgages in order to get the uncreditworthy into homes of their own, all the while warning the borrowers not to rack up too much consumer debt in the future. Naturally, once into the new home in a middle-class neighborhood, they'd buy Escalades, Bimmers, Volvos, and then buy fancy rims for the Slade, and sure enough when the ARM rate went up, out went the For Sale signs. It became clear that too many new homes had been built, too many mortgages had been sold, and a bubble formed.
The Big Short explains the gambling aspect of the bailout with a degree of humor that ought to scare the viewer. Ultimately, the taxpayers were put on the hook for a mere 5 trillion dollars. John Bird and John Fortune put a video on YouTube about the sub-prime crisis.
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