Ten states on the verge of bankruptcy

[Haya01B]

Nah! The one to kick for that is the one who appraised the house for that amount and based off of what! The imaginary market analysis that is compared to how much other people paid for similar houses and not what the house was actually worth. The housing market was just a big pyramid scheme. People kept borrowing money on their houses and selling the debt to someone else then the builders would base their prices off of that debt and so on.

 

[AZIROC]

In no order:

1. California
2. Michigan
3. Rhode Island
4. New Jersey
5. Florida
6. Illinois
7. Wisconsin
8. Arizona
9. Nevada
10. Oregon

10 States In Financial Crisis | NowPublic News Coverage

i was gonna say, AZ HAS to be on this list. i work for the city and things are BAD right now. no money for anything and if we dont get any $ there will be ALOT of public servants (aka, police, fire, medical) will be layed off.

 

[J'Man]

Nah! The one to kick for that is the one who appraised the house for that amount and based off of what! The imaginary market analysis that is compared to how much other people paid for similar houses and not what the house was actually worth. The housing market was just a big pyramid scheme. People kept borrowing money on their houses and selling the debt to someone else then the builders would base their prices off of that debt and so on.

The market analysis wasn't imaginary, the property values were going up due to the drastic increase in demand due to the sub-prime loans. Many unqualified people were granted loans the banks knew they couldn't pay back. Basic law of supply and demand. When the sub-prime market blew up, down came everything with it.

 

[Haya01B]

There you have it! The act of refinancing a house has been around long before the sub-prime loan situation. The sub-prime loans were created because the people who pulled all the equity(imaginary money) out of their homes and sold the dept to someone else. Now when the first person sells their original debt along with the equity(imaginary money) debt the new owner that owner borrows more money and sell the debts on the the next and so on. That was the hand that was dealt and thus what the out come has came.