Wednesday, February 21, 2007

So *That's* Where All the RE Money Went!

Living in Silicon Valley and watching the real-estate market shoot up and up for the last 10+ years, I knew something was up.

I had a pretty-good handle on why people were able to get the easy money necessary to spend $600k+ on a 800 sqft crackerbox that any young professional couple should be able to afford but couldn't. I also knew that banks were giving huge loans to anyone willing to say, "Sure, I make that much money". I also knew that the banks were making money on bundling these loans and passing them off to someone else. The only thing unanswered was, "Who's getting stuck with these bad loans?"

Well damned if they aren't turning up now:

Jeff Matthews

Mystery solved?

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