Wednesday, October 8, 2008

Housing Bubble, Credit Crunch

The housing bubble explained. Damn, this guy is good. Be sure to watch all 4 parts of this video on youtube. He makes some very valid points. And the facts back him up. I used to think that an Amsterdam house at the canals would have been the best investment ever. Yet, if you look at it over the long run, it's different. From the 17th century until now, guess what the price development was of these houses? It's exactly equal to the inflation rate.

Also, I learned what Negative Amortization is: very scary!

1 comment:

jacco said...

I don't read the Wall Street Journal or The Economist, but when I watched this BBC Panorama program a while ago, I knew something was going on...