And that caused housing prices to go up.

The mortgage...

The house costs double what it did before.

You'll sell the house and you'll pay it off, even though you can't pay the mortgage anymore.

Or they might even start to buy things that aren't Treasuries.

Now, we have this whole securitization,

Most of the loans we're familiar with in our personal

And then they would take a loss.

So right here are a whole bunch of people's mortgages.

(Laughter)

And because housing prices went up, what did that cause?

Let's say it's um let's say its 10 billion of commercial mortgages.

So of course, what matters in a home?

causing the housing prices to trend.

So let's look at possible theories.

So let's think about how we manage our money.

So we know that housing prices went up.

Well I have the original mortgage on my house.

why.

And here I've been working for the last three years with a South Bronx developer to bring art to life to low income buildings and affordable housing.

Well everyone knows that it's not going to be exactly 10 .

I suffered from my mortgage loan.

Depression.

It's only worth 100,000 now.

Let's say I'm some type of the Investment Bank.

We all have heard of it.

It's all automatically calculated.

We can even say, from 2000 to 2006.

And you can think about why they haven't.

And I'll show in a future video that the only reason why housing prices did go up is that it just became easier and easier and easier to buy a house.

You're assuming interest only loans.

So, each of these is an investor.

House prices have remained static for several months.

How is spending going up?

What drove prices to increase so fast?

And housing prices continue to fall even as the latest economic stimulus package fights its way through...

This is really the tip of the iceberg.

The down payment matters.

United States.

What does it mean, derivative?

But for the simplicity of this argument,

Remaining mortgage on the home, 1 07,000.

Or, God forbid, if housing prices actually go down.

Before I go a into an explanation of why housing prices skyrocketed from 2000 to 2006, I think it's a good idea to give a little history of what the housing market and the mortgage market used to be like before things got out of control.

Demand for housing was going down.