Lesson 9: Housing Market Collapse and Foreclosure Tsunami

October 22, 2025

Review:

• Deregulation and the 2008 Housing Crisis

Presentation:

• How the 2008 Mortgage Crisis became a 5-year Housing Market Depression
  • US Mortgage Meltdown (CBS 60 Minutes, May 2008, 12:30)
  • Walking Away from Underwater Mortgages (CBS 60 Minutes, May 2010, 4:30)
• Banks made the housing depression far worse
  • Neighborhood Deterioration (CBS 60 Minutes, Dec 2011; 13:10)
  • Banks are Destroying America’s Neighborhoods (2012)
    • Part 1
    • Part 2
• Eviction as a cause of poverty
  • PBS Newshour Interview with Matthew Desmond
• Affordable Housing Crisis
  • Millions of evictions and vacancies
  • Rising Rent
  • Stagnant Wages
  • Homelessness

Activity:

• Signup for a particular organization (e.g., Lehman Brothers, Dept of Treasury, or Fannie Mae) that was caught up in the 2008 Crisis.

Assignment:

• Research your organization and prepare the following 3 PowerPoint or Google Sheets slides:
  • Slide 1: Background on the organization, structure, business, key leaders
  • Slide 2: Role in the 2008 Crisis. What did they contribute to the mortgage meltdown?
  • Slide 3: What is their current status? Did they go bankrupt? Did they receive a bailout? Did they repay their bailout? Have they changed their business practices?
• Presentation submission
  • Create a 2-3 minute video explaining your slides.
  • Email a link to the video.
• Recommended (not required): watch Poverty Politics and Profit (PBS Frontline)
• Recommended (not required): watch 99 Homes