Her 29-year-old daughter, a graduate student with an annual income of less than $20,000, qualified for a mortgage of $600,000 with no money down, split into two different loans at 8.75 percent and 12.5 percent interest rates.

All of a sudden they realize that lending out $500,000 to someone making $40,000 a year wasn’t so smart.

Quelle: Real Buyers of Genius: Another $20,000 a year person takes on a $600,000 mortgage.

Ja ja, bei schnell verdientem Geld setzt bei einigen das Gehirn aus. Wie immer braucht es aber zwei, um solche wahnwitzigen Verkäufe zu realisieren: Den Käufer (Idiot) und den Verkäufer (Dummschwätzer):

Now that we are entering the crisis stage, and this has been argued ad nauseam in many economic books regarding bubbles we start seeing an outing of the shysters and snake oil salesmen […]

Mit dem Platzen der Blase wird der Schock auch an die Wertpapiere weitergegeben (spätestens seit tüftige Geldvermehrer herausgefunden haben, wie man Risikohypotheken handelbar machte und anfänglich Profit abwerfen liess, hängt alles irgendwie zusammen):

Yes, you just made 1% on your investments while the price of gas just went up 20%. Great job America in understanding that inflation is another tax. Yet we have a core of people out there that god forbid, they hear the word tax in their vernacular and start screaming communism as if Hugo Chavez was marching on Washington. Yet they are okay to allow massive deficit spending ala the war in Iraq and tax breaks and they smile while they can’t comprehend why their dollar doesn’t buy as much Wal-Mart crap as it did a year ago.

[…] the amount we are spending is so spectacular that someone has to pay for it and it sure as hell isn’t going to come from higher taxes. So we get taxed via inflation, the stupid tax, and people go on with their merry lives.

„Jungunternehmer“

Wohl etwa in meiner Generation wurde es erstmals möglich, mit 25 schon zu Millionär zu werden. Einige schafften es bei der Dot-Com-Bubble, Casey Serin schaffte es aber leider nicht bei der Housing-Bubble. Der Grund:

Unfortunately for Serin, the real estate market was essentially peaking almost exactly when he decided to quit his job. In what would prove to be a recurring theme in his life, Serin arrived to the game proverbially „a day late and a dollar short“.

Quelle: Casey Serin