As I’ve said numerous times, anyone who didn’t see the housing bubble coming was either blind, not paying attention, or simply got caught up in the buying frenzy.

Or perhaps they were affiliated with the National Association of Realtors and just didn’t give a damn because they wanted to cash one more bloated commission check before anyone figured out that the gig was up.

Either way, what’s done is done, and the remnants of a decade of ill written mortgages are now providing those folks like me the bittersweet chance to say…

I TOLD YOU SO!

Problem is, I don’t particularly get any satisfaction from saying “I told you so“, and those who know me would back that up.

But I saw something today that most people (including me) might have passed off as fiction when it comes to how easy it was to get a loan on any home.  And in this case, I use the word “home” somewhat loosely.

Below you will find a video from the Wall Street Journal that, in my opinion, distills the housing boom and bust cycle in a quick 2 minute video.  

This 560 square foot “home” in Arizona has dry rotted walls and a floor so rotten that you would likely crash through it if you chose to inspect it.  Of course, this home was appraised at a value of $132,000 in 2006, given a $103,000 mortgage at 9.25% (capped at 15.25%), only to be declared unfit for human occupancy two years later.  It was recently sold at foreclosure for $18,000 to a neighbor who will tear it down. 

A well done piece of reporting considering that these types of ill conceived lending practices have been packaged into the, now infamous, mortgage backed securities where a group of risky mortgages could be packaged with a few good mortgages, and subsequently passed off as Triple AAA rated securities.  To which, even guys like Dilbert have taken aim and poked sufficient fun at their arrogance and stupidity.

If anyone has a better example of the complete stupidty regarding the subprime mortgage mess, I would like to see it.  Please leave the links in the comment section below. 

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Photo by takomabibelot

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