Wednesday, October 01, 2008
Captain Capitalism has been at this much longer, and like at least one of the Schadenfreude bloggers has worked with real estate and lending. Indeed, he now has his own book on the collapse of the local real estate market, which I was privileged to read in advance of its general release. It is full of excellent stories that tell how loans were inflated. (Indeed, Arnold Kling in his podcast with Russ Roberts this week notes that no money down loans -- even loans on fraudulent values -- are not found out if real estate values are rising, which is why for many years nobody could understand why those fools in the old days insisted on 20% down for a house.) Aaron is far more critical of the bailout plan than me, and as a guy with insider knowledge is a viewpoint you should read.