20Solutions LLC » Economy http://20solutions.com Small Biz Internet Marketing Thu, 25 Aug 2011 20:18:32 +0000 en hourly 1 http://wordpress.org/?v=3.2.1 An explanation of the mortgage crisis … http://20solutions.com/an-explanation-of-the-mortgage-crisis http://20solutions.com/an-explanation-of-the-mortgage-crisis#comments Mon, 22 Mar 2010 09:44:03 +0000 Gabriel Goldenberg http://20solutions.com/?p=379 I recently re-watched this excellent CNBC Original program on the origins of the current economic decline. House Of Cards explains how over-leveraged mortgages were propagated, how these mortgages were packaged by Wall Street and resold internationally, and finally how they led to the decline in real estate prices that caused an unprecedented world-wide credit crisis.

I think the main points to take away from this program are the time-honored lessons of:

  • Don’t trust a deal that seems to good to be true
  • When investing, perform your-own very thorough due diligence. Do not rely solely on advisors and ratings agencies.
  • Do not invest all of your money in to a home. Make sure you save plenty of money for unexpected expenses or a cyclical real estate market trough that may not allow you to refinance your mortgage.


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