The real fools are the doomsayers who have no information to back up their “sky is falling” claims. We’re doomed! We’re doomed! Oops forgot CAPS ON. Fools! Fools! Oops, shorts! shorts!
No facts to back it up?
Really?
Well lets just see whats been going on in the last 2 weeks shall we? You think its simply sub-prime.. ok then...
Here we go:
Nice article about how money is exiting the mortgage markets completely, not just sub prime, but ALL mortgage paper has become difficult to move, A, Full Doc, buyers are bailing on mortgage backed securities of all types, not just sub prime.. and its impacting GLOBAL markets, not just the US and not just Sub Prime.
Mortgage problems in AUSTRALIA
http://www.reuters.com/article/gc06/idUSN0832017120070810
How this is effecting credit conditions around the globe! Not just in mortgage industries, and not just in the west.
Alt-A loans which are well qualified buyers who cannot document income, or do not wish to jump through hoops to document all income (Generally Higher Income, Entrepeneurs and the like) are now having difficulty getting loans on houses.
Lehman rates the current credit tightening a 7 out of 10 (10 being the worst) Forecasts are now at $200 BILLION in losses to investors and homeowners... the S&L Crisis was about 125 Billion... and frankly I think the estimates are LOW.
You can cover your eyes and think this is just some minor thing, feel free, but the facts are out there.. you choose to ignore them, that’s up to you.
Will the economy eventually recover? Sure... but this isn’t some blip on the radar, and its going to get far far far uglier, before it gets better.