Monday, April 11, 2011

Funny "Real Estate Downfall" Video



Okay, I know, I know. This video is pretty silly. But for those like me who felt like reading about the real estate market collapse was like reading in a foreign language (German, perhaps?), it's actually really rewarding to watch this video because if you've done the reading you can actually understand most if not all of the real estate references they make. A few of the buzz phrases I caught include:

  • Adjustable rate mortgage
  • McMansion
  • Housing bubble
  • Refinance
  • Home equity loan
  • "Pick a payment"
  • Lehman/AIG stock
  • Government bail out

It's a ridiculous video, but it's also a good test of your housing bubble knowledge.

5 comments:

  1. I thought this video did a pretty good job in presenting how the housing bubble was created and popped in easy to understand way. Sometimes things need to be explained in a simple way so that everyone can understand housing market works in order to prepare themselves for the future.

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  2. I think this video really shows the emotion and devastation felt when learning your house is being foreclosed upon.
    I agree this video did a good job and it is important that things are explained in a simple way so everyone can have a chance to understand.
    I would like to point out the number of people who left the room when asked who predicted this foreclosure crisis. Had people really tried to change the process and people been willing to listen, then we may not be in our current crisis. I find it amazing how in the United States and around the world swine flu became a “world epidemic”, but no one would listen about the future housing crisis if things did not change.

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  3. The video definitely helped me test my knowledge. Thanks for posting it, Bridgett. I think that by now we can all understand and relate to the mindset of the consumers, but too often my understanding of the problems gets muddled by all of the banking jargon in the readings. (Yes, I know that the book is intended to help us translate the jargon, but there is just SO much) I'm glad I'm not the only one seeking out alternative narratives.

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  4. This video hits the mark. Many people suddenly realized that they were screwed by their realtors. What I found characteristic is his last sentence: I was just following orders. Many people thought that they only do what they are supposed to do and that that they would be stupid by not taking advantage of it. That is why I think that the government sometimes has to tell the citizens what they are supposed to do. Would it have done it, many citizen would be better off today.

    P.S.: Right, the video is in German and like you can probably tell, the subtitles are not a correct translation:-)

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  5. I wonder if a video like this couldve been made by poeple warning about a bubble in 2004. If they couldve and also could have gotten someone to pick it up on television, would the average American been able to laugh their way into better judgement?

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