The mortgage lending crisis explained

Want to REALLY understand the mortgage/credit crisis and the myriad human failings that created the mess we're in? Click HERE to listen to the "Giant Pool of Money" episode of NPR's THIS AMERICAN LIFE.

It's astounding. From the story:

People would close on a house, sign all the papers - - and then default on their very first payment. No loss of a job; no medical emergency. They were underwater before they even started.

There's the story of one particular person - now in deep financial trouble -  who, upon looking at the mortgage loan application his original broker filled out for him, learned that it claimed he made $16,250 a month. He was able to get a half-million dollar loan while making $37,000 a year. What's in it for the broker? An $18,500 commission.

Foreclosure is becoming a booming industry.