And that caused housing prices to go up.

The house costs double what it did before.

Now, we have this whole securitization,

And then they would take a loss.

(Laughter)

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

causing the housing prices to trend.

So we know that housing prices went up.

So of course, what matters in a home?

So let's look at possible theories.

Depression.

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.

We can even say, from 2000 to 2006.

And you can think about why they haven't.

It's all automatically calculated.

House prices have remained static for several months.

How is spending going up?

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

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

The down payment matters.

What drove prices to increase so fast?

United States.

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

And then tweak your assumptions.

Demand for housing was going down.

So this rationale of pay more to rent the money for a house than to rent the house is justified if housing prices go up.

So I've done this series of presentations about housing.

And they'll be like, well that doesn't make sense.

It becomes 10 times worse when housing prices are flat.

So when housing prices go down, that's the only situation where really you should have foreclosure.

I have right here, this is the Case Shiller index.

The Chinese government took measures to slow the rise of the price of houses.

So most of them just kept it on their balance sheet.

And that drove the economy.

So here's how this supervised learning algorithm works.

Now that, I think, on a nationwide basis, a lot of the housing indices show that housing prices have gone down,

So now let's play with some scenarios of what happens, maybe, when the market value of the house changes.

We offer low cost prefabricated houses.

And that might sound like a very reasonable proposition, that the house will appreciate by 1.5 .

And so the whole reason why this worked out, even though maybe I was a credit risk, is because the housing prices went up.

More formally, in supervised learning, we have a data set and this data set is called a training set.

Why would you pay 2 billion?

Financing got easier and easier.

And it really started to take steam in the early part of this decade.

That financing got easier, despite the fact that people were earning less, population wasn't increasing that fast, that there were all of these new houses.