This isn’t political. This is dangerous, dangerous economic stuff.
Why ? Less than 4% of mortgages are delinquent or in default - meaning 96% of Americans are (so far) secure in their mortgages.
Who will get hurt ? The intemperate fools who bought and lent to those buyers houses they could not afford. Hedge fund investors and their managers who invested in subprime debt. Corporate buyouts based on unrealistic multiples of earnings.
Need I go on ? The stock market will not tank beyond a basic correction, because so far, corporate earnings are decent.
I don’t see another major recession coming long in the wake of this.
I still think ongoing excess money supply is our bigger long range problem, and the slowing of the debt creation process thru fewer loans will be a help.
Shaking stupidity out of the markets is a good thing.