Guest Post by Anthony B. Sanders
Only a couple of days until Paramount Pictures’ “The Big Short” hits the theaters.
As I have discussed before, the movie (and book) is about collateralized debt obligations (CDOs), subprime lending and the crash of the housing prices. The housing price bubble went hand-in-hand with the growth of subprime lending in the mortgage market.
Not to mention the growth of exotic adjustable-rate mortgages (ARMs), acting to offset the decline of real median household income that had been dropping from 1999-2005. The area in electric blue is the focus of “The Big Short” where Christian Bale says the whole housing market is propped up by bad loans.
