Housing Conundrum (part 4)

The virtuous circle of housing price appreciation making defaults go down making lending lax making housing appreciate even more

Category:

Education

Tags:

• Housing
• bubble
• lending
• mortgage
• financing

[hctivas]

explained clearly even to people without expertise in finance.

[shofie222]

Financial got easier because the Greed.. this video is awesome!!!

[iNinjaNotes]

@TheMailprasad I remember watching this series a while back. I think he meant that financing got easier because of lax lending policies, like no down payments, extended mortgages and bad credit lending. While housing prices went up because of excessive lending mean't that everybody could own a house and the demand skyrocketed for housing. Demand = prices rise. I'm sure he just made a small slip if that's even what he said.

[TheMailprasad]

In part 3, you said, financing got easier because housing prices went up and here you say housing prices go up because financing got easier. Isn't this logic recursive ?

[mahela1993]

Fantastic videos Mr. Khan!!

[mahela1993]

It might sound naive, but I think the main reason for all this is that people wanted to live beyond their means...Because they wanted borrow a tone of money to pay for a house that they couldn't really afford.

[eecsta]

thanks for posting these awesome videos!

[BapidBeagle]

Ohhhhhhhhhhhhhhhhhhhhhhhhhhhhh­hhhhhhhhhhhhhhhhhhhhhhhhhhhhhh­hhhhhhhhhhhhhhhhhhhhhhhhhhhhhh­hhhhhhhhhhhhhhhhhhhhhhhhhhhhhh­hhhhhhhhhhhhhhhhhhhhhhhhhhhhhh­hhhhhhhhhhhhhhhhhhhhhhhhhhhhhh­hhhhhhhhhhhhhhhhhhhhhhhhhhhhhh­hhhhhhhhhhh.

[DocRocz]

One item that I didn't see covered was, the change made to the Community Reinvestment Act. In 1999 the Congress enacted and President Clinton signed into law the Gramm-Leach-Bliley Act, also known as the Financial Services Modernization Act. This law repealed the part of the Glass–Steagall Act that had prohibited a bank from offering a full range of investment, commercial banking, and insurance services.

If you've ever heard of Foreclosure Phil well this is the guy Phil Gramm.

[plasticbarf]

Very good video(s), I agree wholeheatedly. Bankers used to know their communities and were able to understand who would and would not be suitable to give a loan to. The problem arose when there was just a rating like AAA, which was to be taken on faith. I really think that is the genesis of the problem.

[ifginc]

Integrated Financial Group is that name that you have been looking for getting the best mortgage plan to suite your wallet and wishes.

[Corsaircid]

@ZakBrownrigg123 Good question.

People whould should not have qualified in the first place may have been unable to pay their loans,because of the Sub prime.America since the Dot com bubble was only interested in speculitive wealth rather than creative wealth.China was making all the stuff.If banks of a country lend beyond its economic capacity like in Argentina then financial problems will occur.

Cheers!