I’m not a fiscal-minded kind of guy and I don’t understand a lot about international finance issues at that high level. But it seems to me that a lot of the sub-prime lending nonsense was encouraged and enabled by Democrats in Congress, primarily Barney Frank and others. But now I’m finding articles on usually respectable sites that say the crisis was caused by a $700 billion tab for Arab oil that the Saudis and other Arabs won’t accept anything but hard cash for. Correct me if what I have been given to understand is wrong.
Well surprise, if they have no money to pay for the loan, it's going to go down.
The ultra low interest rates also made home prices unrealistically surge.
The bubble in real estate was world wide, and as a correction hits, there are banks folding everywhere world wide.