i'm not sure if the video is attached or not but if it isn't, the website to visit for a short video is... http://www.cnbc.com/id/15840232?video=1029066462&play=1
On the video, a man during the econonomic collapse found that the market was unstable and they they couldn't keep loaning out money. Because none of the people he went to and believed them, he decided to make a profit off what people were doing and became the middle man between stock exchanges and mad around 400 million dollars in 18 months. Because the market was a "house of cards" waiting to get blown over, he maximized his profit after he discovered what would happen. What do you think would have happened if more people took notice as he did? Would we be where we are now? Also, why were the people on wall street in such a belief that it couldn't possibly happen even though the man had evidence to how?
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When people get used to the way things are, it takes something huge (like, oh, I don't know, a catastrophic housing market crash) to get them to open their eyes to the possibilities of change, be it good or bad.
ReplyDeleteEver since I was little, my dad has been pruning me to take over some of his rental real estate. The phrase "real estate always goes up" was as common as "eat your green vegetables" at my dinner table. Even as the economy clearly began to take a turn for the worst, my dad was still confident that real estate was the best possible way to invest your savings. Now, of course, he's not so sure.
I think the collapse of the housing market and the financial mishaps it revealed was so sudden and shocking because people refused to accept the possibility that a tried and true market could take such a phenomenal hit. It wasn't just the people on Wall Street, it was real estate investors everywhere.
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