Hot take: That tweet about the housing crash in 2006 was either genius or lucky guessing

My buddy linked me a deleted tweet from some random account back in 2006 that said "subprime loans gonna crash the whole market by 2008." Everyone laughed at the time, but then the recession hit and they were spot on. Now some people say it was just a obvious prediction given the data, but I'm leaning more toward they had inside info from a banking source. What do you all think, was it a lucky guess or did they actually see it coming?

3 comments

3 Comments

abbyp619d ago

People who worked in mortgages back then saw the defaults piling up months before the public did.

jessem598d ago

7 million foreclosures by 2008 and people still act like nobody saw it coming until the housing crash. I get what @abbyp61 is saying but honestly @stella22 I think it's way overblown. Look back at the data and most mortgage guys I knew were still handing out loans like candy right up until the fall of 2007. Sure there were a few people grumbling at the water cooler but nothing that screamed "this is gonna tank the whole economy." That deleted tweet was probably just someone who got a lucky guess after the fact. Everyone loves to pretend they were the one who called it when there's zero real evidence they actually did.

stella229d ago

Oh wow, @abbyp61 actually I used to think it was just a lucky shot too but you're making me reconsider. There was a guy in my old neighborhood who worked as a loan officer and he'd talk about people walking away from houses they couldn't afford back in 2005. Said the bank was approving anyone with a pulse lol. So yeah, if you were paying attention in the mortgage world you probably saw the red flags way before the rest of us. That deleted tweet was probably just someone who worked in that system and connected the dots.