60 Minutes Video: "House of Cards" on the Subprime Bubble & Collapse

[El Pinko]

60 Minutes Video: "House of Cards" on the Subprime Bubble & Collapse


http://www.cbsnews.com/sections/i_video/main500251.shtml?id=3756665n&channel=/sections/60minutes/videoplayer3415.shtml


Also, see related article:

http://www.cbsnews.com/stories/2008/01/25/60minutes/main3752515.shtml

[chelsea0011]

1. This was a nice job by 60 Minutes that didn't fall into the "these people were

stupid" mode that I keep seeing by the talking heads on TV. The story points out how Wall Street is also to blame and the Catch 22 of families whose houses have less value can't refinance. And it was stunning to see how many homes in Stockbridge, Ca. are on the cusp of foreclosure.

[DemReadingDU]

2. nice segment, here is link to the article

1/27/08 "60 Minutes" Reports On How The Subprime Loan Crisis Is Shaking Markets Worldwide

Steve Kroft reports on how the U.S. sub-prime mortgage meltdown, in which risky loans drove a housing boom that went bust, is now roiling capital markets worldwide.

http://www.cbsnews.com/stories/2008/01/25/60minutes/main3752515.shtml

[NashVegas]

3. There Was So Much More To It Than Risky Loans

There were several industries colliding to lean on people to buy new homes, even if they didn't seem affordable.

Housing industry
Banking industry
Television / advertising industry (who brought us shows like "Flip This House")

On top of which, you had the very, very vocal Joneses - people who bought into the pyramid with specific intentions to sell for the max profit after some quick cosmetic changes - telling their peers they needed to get in on the ride while they still could.

We had several condo towers go up in the last three years with deals where you pay $5k down and don't have to make a mortgage payment until construction is complete. People who bought in on the ground level for that 5k made shit-loads. Great for them, but I'm going to be laughing at whomever gets caught holding the bag.