"Mortgage Meltdown" on Four Corners
ABC's Four Corners just aired a fantastic episode on the fallout from the US sub-prime mortgage crisis.
I love this quote from the end:
PROFESSOR ROBERT SHILLER, ECONOMICS, YALE UNIVERSITY: You know some people think that home prices go up 10 per cent a year. Do you know what Amsterdam would be worth today if it went up 10 per cent a year for the last 350 years? And if people know about the power of compound interest it would be worth more than the solar system or something. It can’t happen. So if you look about long term trends in real estate maybe one per cent a year, tops, over long, over centuries. Otherwise it’s just, it doesn’t fit. It’s just not going to work.
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