The housing bubble bust. Forget bubbles let's talk about real people.
"Really Right Home Construction" built I nice brick home with a 2 car garage for $50,000 in labor and materials. This is the houses actual value. Tom's real estate was asked to sell really rights home for $75,000. Since other homes cost about the same. Bob and Sue American both had jobs with 'Daddy Warbuck's factory.'
At the time 'Daddy Warbucks factory' was privately owned. So after 5 years, Bob and Sue bought a home. Tom's Real Estate had a nice home for sale for $75,000 Dollars built by Really Right Home Construction. Now to buy this home they went and aplied for a loan at Small Budgets Bank. They were approved for a 30 year mortage at only $500.00 per month. for 360 months at $500 per month they would spend $180,000 for their $75,000 home. So they kept paying the mortage. 20 years later Daddy Warbuck's factory was sold to big corporation for lot of money, This allowed Daddy Warbuck's to retire. Big corporation saw that if they were to automate the factory they could make more stuff and save money on labor. In the meantime "SmallBudgets Bank" became "Big Budgets Bank." One of their board members owned shares in "Big Corporation." Big Corporation decided to automate their factory and and rebuild it overseas, inorder to increase share holder value. Bob and Sue got pink slipped instead of rertired. Saving "Big Corporation" lots of money. so now Bob and Sue hadlost their jobs in 2002. They had been making their home payments of $500. for the last 20 years, having put $120,000 into the purchase of their $75,000 home that had cost $50,000 to build. And then "Big Budgets Bank" foreclosed on their home saying that they shouldn't have gotten a mortage they couldn't afford. This is what happened to 10's of 1000's of Americans. That is "The Rest of The Story."
"Really Right Home Construction" built I nice brick home with a 2 car garage for $50,000 in labor and materials. This is the houses actual value. Tom's real estate was asked to sell really rights home for $75,000. Since other homes cost about the same. Bob and Sue American both had jobs with 'Daddy Warbuck's factory.'
At the time 'Daddy Warbucks factory' was privately owned. So after 5 years, Bob and Sue bought a home. Tom's Real Estate had a nice home for sale for $75,000 Dollars built by Really Right Home Construction. Now to buy this home they went and aplied for a loan at Small Budgets Bank. They were approved for a 30 year mortage at only $500.00 per month. for 360 months at $500 per month they would spend $180,000 for their $75,000 home. So they kept paying the mortage. 20 years later Daddy Warbuck's factory was sold to big corporation for lot of money, This allowed Daddy Warbuck's to retire. Big corporation saw that if they were to automate the factory they could make more stuff and save money on labor. In the meantime "SmallBudgets Bank" became "Big Budgets Bank." One of their board members owned shares in "Big Corporation." Big Corporation decided to automate their factory and and rebuild it overseas, inorder to increase share holder value. Bob and Sue got pink slipped instead of rertired. Saving "Big Corporation" lots of money. so now Bob and Sue hadlost their jobs in 2002. They had been making their home payments of $500. for the last 20 years, having put $120,000 into the purchase of their $75,000 home that had cost $50,000 to build. And then "Big Budgets Bank" foreclosed on their home saying that they shouldn't have gotten a mortage they couldn't afford. This is what happened to 10's of 1000's of Americans. That is "The Rest of The Story."
