People lost their jobs.
When they purchased their homes they could afford them.
People did what has been real estate investment practice for the past 40 years in the US: Buy the most house you can get a loan for, even if there's a balloon payment due within 2-5 years. Your equity will increase, the value will have appreciate
d, you can refinance it to pay off the balloon, your investment is sound.
The real problem that has been plaguing us is the pyramid scam of over-devel
opment of our resources. Over-devel
opment of land. "Growing the economy" (more people). The answer isn't "more people"; it's conservati
on of our resources, developing the talent and expertise of the people who are already here. It's not automation
, doing away with the need for people's labor, but better quality merchandis
e that lasts longer.
It's begun again, over-build
ing, and NONE of the legislatio
n passed in the past two years has addressed what caused the meltdown. None of it.
Read the Article at HuffingtonPost
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