In his 2006 book, "The Crash Comes", a German economist named Max Otte predicted that the practices of mortgage lending at the time would lead to a financial crash. As he saw it, financial institutions’ habit of approving unsustainable loans would leave a lot of home owners overextended and burdened with debts they could not possibly repay. Otte predicted that the value of the U.S. dollar would fall significantly, triggering a worldwide economic crisis.
Sadly, Otte’s predictions have come true. In the past few years, millions of people have lost their jobs. Home foreclosures are at an...
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