How an Economy Grows and Why It Crashes

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homes instantly unaffordable for those borrowers whose only 
hope had been a quick resale or fi sh-traction. With homes 
worth less than their underlying loans, the temptation to 
walk away from big payments became intense. This was 
especially true for those who did not put any fi sh down at 
purchase. Having made no prior commitment of funds, 
these borrowers had nothing to lose by not paying their 
mortgages and allowing the bank 
to foreclose. 
As more and more borrowers 
defaulted, Manny Fund’s 
securitized loan business 
was soon declared bankrupt. 
The losses overwhelmed the 
venerable institution. Shortly 
thereafter both Fishy and 
Finnie admitted that 
they too were belly-up. 

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