How did the crash in 2008 happen?
The complexity of the system makes dialogue on the subject difficult but we will try to describe what happened that resulted in the housing and financial crisis by focusing on the key players.
( When you see a link it’s there to offer more information and sometimes links to an explanation of other important parts of the system.)
Player 1: A teacher named Paul gets married to Phillipa in the summer. They decide after the honeymoon a house is needed as the family is growing so they apply and are granted after much paper work a mortgage for a house in a leafy suburb an hour outside the city. The house is worth just 1 million but Paul and Phillipa are both working teachers and have a joint yearly income of 75000. Phillipa works out that with yearly repayments of 20000 it will take them 50+ years…