Sub Prime / Real Estate bust explained

Here is how Paul Krugman puts it.

You don’t know anything about the cows that contributed body parts to your package of ground beef, so you have to trust the supermarket when it assures you that the beef is USDA prime. You don’t know anything about the subprime mortgage loans that were sliced, diced and pureed to produce that mortgage-backed security, so you have to trust the seller — and the rating agency — when they assure you that it’s an AAA investment.

But nothing can explain the mess better than the funny video below.

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Why I moved to Bay Area?

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