CNN Money has an excellent synopsis of what went wrong with sub-prime/very creative [tag-tec]real estate investing[/tag-tec] debacle.
Beginning with distressed homeowners, the article is divided into seven easy-to-understand vignettes.
Each vignette provides a rich summary taking us quickly through each step to the mortgage brokers, appraisers, mortgage lenders, Wall Street, rating agencies, and the Federal Reserve. And you don’t have to have a business degree from Harvard to understand it all.
So who really is to blame?
All of the above, according to CNN Money, and perhaps that is correct to a certain extent.
It’s still a very interesting background for real estate [tag-self]investing[/tag-self] and what could go wrong when people lose their common horse sense.
And the timing is almost comical in a strange way after former Fed Chairman Alan Greenspan’s rant against Bush.