It was just a perfect storm is basically what he was trying to say. Lowering standards, global imbalances and low interest rates all at the same time.
This is definitely the right answer. I would blame a large part on lowering standards and exotic mortgages for this than interest rates, but interest rates definitely had a factor. As an accountant, hearing what some people were making and what they paid for a house from some of these clowns on TV almost made me have a few strokes. How can one make $50,000 a year and afford a $750,000 house? HOW?
And some smooth talker tried to convince them they're making the dream purchase of a lifetime and their increased equity would realize further dreams. The financial illiteracy in this country is mind boggling.
