That was a very nice video but I have a few problems with it.
Number one, the author forgot to mention that it was the gubmint that FORCED the lenders to make those risky loans. He totally left out any involvement of Barney Frank and Chris Dodd in this.
Second, his graphic of defaulting homeowners shows about 95% defaulting when in fact it was the opposite. AND, his claim that $300,000 homes are now worth only $90K is exaggerated. I’m sure that some knows of such isolated cases but nationally median home prices fell about 15% last year. The real home price decline is hard to determine because just stating that the median sale price of a home went down does not take into consideration that the mix of homes for sale is not the same. For example, more lower priced homes went on the market and or foreclosed than higher priced homes. People in higher priced homes (for the most part) are still paying their mortgages and are more likely to hold out for better times. Viola, the median price of home sales goes down.
Third, he claims that people were walking away from their homes even if they could afford the payments. While I’m sure this happened, there is no evidence that this was done in any measurable amounts. He makes it sound like everyone is doing it, bullony.
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