Saturday School: How a Housing Bubble Destroys Wealth

Housing bubble
Photo by sommart sombutwanitkul / Shutterstock.com

A decade ago, a housing bubble burst, destroying a huge amount of wealth in households across the U.S.

Today, housing markets are again soaring, leading some to wonder if we are in for a repeat crash. But what causes these destructive cycles?

Watch this Khan Academy video to learn how a housing bubble inflates — and implodes. And find out why no amount of legislation can recreate all that lost wealth.

After you watch the first part of this video, be sure to check out the second part.

Do you think another housing crash is coming? Sound off by commenting below or on our Facebook page.

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