I read this article today and I was amazed at the numbers being put out. I C&P'd most of the article since it's not behind a paywall. I'd like to hear from people closer to the situation of these things are true, because as someone living far away it's amazing.
Please, no political rants...just facts and first-hand observations please.
Mod edit: Added the link and parsed down the summary to avoid plagarism. Free or not, copy & paste of full articles isn't the best policy. --ed.
Link to Article (HT: User PitchAndCatch)
The Wall Street Journal recently ran one of the most creative stories I have seen in years. The journalist told the story of the history of a 5-bedroom home in Detroit, from the land purchase to its recent sale. It was built by one of the most influential man you have never heard of, Clarence Avery. Avery was on the Ford Motor Company team that conceived of implementing an assembly line for Ford's factory. He copied the idea from a hog-slaughtering operation.
His home was a very nice home for the time. The journalist located his daughter, now age 91. She said that she always thought the home was the best home she ever lived in.
As recently as 2005, the home sold for $250,000. It was purchased by a woman who was lent $200,000 to buy it. It was financed by a subprime loan. The asking price was $189,000. Where the other $61,000 went, the woman has no idea. She defaulted.
The deteriorating house was bought by a Christian organization that is renovating it. The house sold for $10,000. [...]
This is the sign of a dying city. This does not happen in a normal environment. Even with the mania created by Fannie Mae and Freddie Mac, in conjunction with Alan Greenspan's Federal Reserve, nothing like this has happened anywhere else.