What Really Caused the Perfect Sub-Prime/Real Estate Investing Storm?

CNN Money has an excellent synopsis of what went wrong with sub-prime/very creative real estate investing debacle.

Is everyone from the distressed homeowner to the Federal Reserve really to blame?

Perfect Storm

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.

 

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