What started the housing bubble? I been hawking the market for a while now. This is the script that I came up with.

In the year 2000, tech companies went skyrocket. Investors believe that there is only upside, so investors kept buying no matter how high the price went. They never ask how much is for valinux, or theglobe.com. New IPO kept popping up, and on it first day the stock price would be sky high. Was I excited like other people when tech skyrocket? Of course I was, I was buying QQQ 100.

Did I lost money during the tech bubble? I did of course. I was 18 years old back then went I started investing. Anyway, let get back to our story; after tech bubble the Fed lower interest rate to pump up the economy. People then start buying home because of the lower interest rate. The lowest interest for 15 year mortgage were as little as 4 percent.

People that can’t even afford a home can now because of lower interest rate. The Fed did pump up the market but then created another one. Now they created the Housing Bubble of 2007, and many people are losing their home. It sad seeing people losing their home, but that how the system work. People always suffer from greed.