Now I've read it all regarding 9/11.

Did terrorists cause the housing crisis? Come on.

http://articles.moneycentral.msn.com/Banking/HomeFinancing/DidTerroristsCauseTheHousingMess.aspx

 

That's crazy talk. Mortgage rates operate independently of the fed funds rate. It's a function of supply and demand. Mortgage rates were low in 2004 because the supply of new houses was insanely high.

 

If you're getting investment education from reading this author, I'd recommend you stop doing so immediately and permanently.

 

What about the random e-mails I get advising me to refinance my home? Should I listen to them?

 

Wasn't it just a little while ago that t he crisis was lack of affordable housing?

 

When fed funds rates go down, banks can borrow from the Fed at a cheaper rate, thus the spread between what they borrow and what they give to depositors widens.

I don't think the supply of housing was "insanely high" in 2004.

 

The terrists are responsible for letting strawberry pickers buy $700,000 homes.
http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2007/04/13/carollloyd.DTL

They are very crafty.

 

The guys got a good case, but I'm still gonna blame it on The Man.