CNN Money has this over at yahoo
How We Got Here: It’s Housing, Stupid
http://finance.yahoo.com/banking-budgeting/article/105782/How-We-Got-Here-It-Is-Housing-Stupid
excerpt
The reason housing is wreaking havoc even on insurers like AIG and big investment banks, who do not make mortgage loans, is that during the boom, trillions of dollars of mortgages were packaged together into securities that promised to pay investors with the proceeds of those loan payments.
Those securities paid better rates than other types of assets during the boom years. So many investors from around the globe poured as much money as they could into those securities.
Faced with this demand, lenders starting making more loans to riskier borrowers, including people who might not be able to afford their mortgage payments in the future and even many with no proof of income.
oh yeah, they borrowed 100 to 1. that is why all the house of cards are falling.
Although, the aircraft leasing business alone is worth $60 billion, and there are negotiations to sell it to the original founder. I dont think that $80 billion from the government will disappear...in fact, I think they will make money on the deal.
oh yeah, they borrowed 100 to 1. that is why all the house of cards are falling.
Although, the aircraft leasing business alone is worth $60 billion, and there are negotiations to sell it to the original founder. I dont think that $80 billion from the government will disappear...in fact, I think they will make money on the deal.