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Sociology Lecture Feb. 26th

Sociology Lecture Feb. 26th - There is an abundance of...

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Sociology Lecture 2/26/10 Mortgages old mortgages – direct relationship new mortgages – brokered, indirect relationship o more incentive to lend, lower standards o more borrowers, sub-prime borrowers o bundled & divided CDO’s o home-equity loans Economic Bubble after a heap, it’s all downhill from there. Greater fool theory not trying to find a house to live in, just to sell.
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Unformatted text preview: There is an abundance of houses now, so people are desperate to sell so they have to sell at a lower price. o In a market of people just buying and selling houses… o People finding greater fools than themselves to sell to… Why Mortgages? • No other worthwhile investments • Federal rate too low...
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