Crisis: You heard it on NPR
Again, some info about the current economy, crisis, finances, etc. Recent article in NY Times (Opinion Page) suggest that somehow computers, math, and complicated financial models are to blame for the current economic situation. Whahaha, what a total BS! Some folks bought up a bunch of "NINA" mortgages, mixed them up with some other slightly better ones and sold other folks as "mortgage-backed" securities [and made very nice commissions along the way]. Now when homeowners stopped paying those [adjustable-rate] mortgages as interest rose up and everything went down to pipes because of that, those folks are saying, "Look ma, computers got it wrong. Math is too complicated". Yeah ...
NPR's show This American Life: Giant Pool of Money
1hr
Couple of weeks ago NPR did an excellent story that gives you a sense about how it all started and what it was all about.
That's the best explanation so far that I've heard. Basically it has to do with a surplus of money around the world, low interest rate and believe that real estate prices never go down. But listen to the story, it's a really good one.