I started writing about the "irrational exuberance" of the real estate market at the end of 2005 as it became clear that the debt feast was coming to an end.
The unraveling of the real estate market isn't funny for people who are stressing over the loss of their home. 2.8 million families are facing unaffordable mortgages that are predicted to go bust over the next 18 months. It's even less funny when one realizes that the inside crowd knew they were making fortunes off of a boom cycle that would surely bust after they'd made their riches. For those getting rich, the "exuberance" wasn't "irrational."
The following video uses humor to explain how the subprime scam worked. British comedians John Bird and John Fortune perform their skit entitled, "The Last Laugh," for the ITV South Bank Show.
Sources:
Credit to Gary North who posted a link to this video in his essay Two Kinds of Experts, November 8, 2007, LewRockwell.com.
November 10, 2007
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Excellent video. Incisive enough to cover the issues, yet it still made me laugh. Laughter can't be overestimated in these times!
Yet here is the rub: nobody in mainstream media seems to think the subprime mortgage crisis is a crisis. Like, WTF? I keep waiting for the house of cards to fall, but all I hear is "experts" explaining that it's a problem, but not a big enough problem for us to worry about. And who is "us" anyway?
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