Let me clear on this. I feel bad for the folks who are going to lose their homes. And to be crystal clear, they’re somewhat abstract to me. I don’t know any of them, so my sympathy for them is somewhat vague and generalized.
However, there is nothing vague and generalized about the danger this whole debacle poses to our economy and that scares the beejeezus outta me.
I agree. Its a terrible thing for someone to lose their home, even if they made a mistake and the real estate agents and the lenders assured them that the house price would always go up.
I think it (rising delinquencies on subprime) is a problem, but not one that is going to destabilize the whole economy. Its an issue, like rising gasoline prices, the falling US dollar, etc. Today, I read in my local paper that foreclosures are lower today than in the recession of the early 90s — the one the media sensationalized and catapulted Slick Willie into office.
The markets will correct, fradulent lenders will be punished (I hope), and caveat emptor (for investors and mortgagees) still applies.