I think you’re probably right. But what that generation ironically doesn’t know and was never taught is that it happened because of politics. Now this isn’t a political opinion, I’m just stating facts. Started w Carter and peaked w Obama.
The Democrats had what looked like a wonderful plan on paper. Help everybody become a home owner. Give out these subprime loans in good faith. Now us bankers took one look at these credit reports and knew damn well all these hundreds of thousands of borrowers would and could never pay these loans back. They can’t even keep up w their car payment. But the banks were forced to write these loans under the threat of government penalty. So we did. And we made a lot of money doing it knowing it would all crash. So the banks - knowingly these loans would implode - sold them off in masses. THAT is where the banks got in trouble.
Anyways, as long as nothing like that happens again, we’re good. In the simplest way to explain, money lending is strictly a case by case risk based business. The less risky you are to return the loan, the better rates and costs you get. The more risky you are to lend money to, the higher costs now and rate now so we get as much of our money back now before the borrower fucks it up.
Basically they tried to boost up the lower middle class and it didn’t work. Middle class folks went “fuck that” if they can all walk away from their homes so can we. Giant tidal wave.
My first home was a foreclosure. 165k. Sold it for way more than that.
Here is a good video explaining it. Political driven, but still informative if you can get past that part.
