Blog on the Run: Reloaded

Thursday, December 11, 2008 9:57 pm

Wrecking an economy, 90 houses at a time

Filed under: We're so screwed — Lex @ 9:57 pm
Tags: , , , ,

The housing bubble that led to the current economic collapse has a lot of complex, interlocking causes, from unqualified buyers to unscrupulous lenders to undiligent mortgage repurchasers to ignorant investment bankers to inattentive (or worse) regulators.

This article in the St. Petersburg (Fla.) Times focuses on one guy who traded in houses in the Tampa Bay area and whose deals, multiplied across the country, illustrate how a significant part of the crisis came to be. Fun fact: One buyer, who worked for a car wash, reported his income as $40,000. A month.

Also depressing, but not surprising: the level of ignorance in the comments.

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8 Comments »

  1. Perhaps some people were just born to fail

    Okay, enough of the funny stuff, now here is

    what really happened

    Comment by Fred Gregory — Friday, December 12, 2008 1:18 am @ 1:18 am | Reply

  2. I stand by my assertion that there are a lot of complex and interlocking factors. This guy is like one of the blind men touching one part (or, to be fair, maybe two or three) of the elephant and saying he knows what the whole thing is. Either he’s ignorant or he’s dissembling.

    Comment by Lex — Friday, December 12, 2008 12:13 pm @ 12:13 pm | Reply

  3. A, well, somewhat more balanced view. But not perfect.

    Comment by Lex — Friday, December 12, 2008 12:38 pm @ 12:38 pm | Reply

  4. Waxman conmes not to seek the truth but to bury it:

    Whitewashing Fannie Mae

    Comment by Fred Gregory — Saturday, December 13, 2008 5:41 pm @ 5:41 pm | Reply

  5. Coupla thoughts:

    1) Fannie and Freddie aren’t blameless, but they started backing out of the worst parts of the market well before things went completely to hell. They’re part of the problem, but far from the biggest.

    2) Might F&F have performed their jobs better — that is, exercised better judgment — if they weren’t being run for profit? I don’t know; I’m askin’.

    Comment by Lex — Saturday, December 13, 2008 9:33 pm @ 9:33 pm | Reply

  6. You may be askin’ but don’t count on scum like Waxman, Frank or Dodd to provide any answers. You might ax Franklin Raines who is in his counting house fondling his 90 milion $$ and advising the Prez elect. Gag !!

    Comment by Fred Gregory — Sunday, December 14, 2008 1:41 am @ 1:41 am | Reply

  7. Banned in the USA

    Comment by Fred Gregory — Sunday, January 4, 2009 9:23 pm @ 9:23 pm | Reply

  8. More on Fannie & Freddie’s role here. Short version: Some role, but smaller than critics are saying.

    Comment by Lex — Tuesday, January 6, 2009 3:41 pm @ 3:41 pm | Reply


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