THE GIANT POOL OF MONEY
Clarence Nathan was a man with three part-time jobs who earned about $45,000 a year, and yet a bank loaned him $540,000. The bank never checked his income.
"I wouldn't have loaned me the money, and nobody that I know would have loaned me the money," Nathan said. "I mean, I know guys who are criminals who wouldn't lend me that money, and they'd break your kneecap."
But this kind of lending happened, over and over again since 2003, leading to the mortgage crisis that has disrupted the global economy.
How did this mess happen? Through the news media you can pick up bits and pieces. But how many people really understand the housing crisis, why Bear Stearns went under, or sub-prime mortgages, or why the rest of the world was pulled under too?
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05-28-2008
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