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because the lenders could turn around and sell them bundled to fannie mae/freddie mac as fast as they could generate ratings from Moody's - fannie/freddie bought everything that came their way - there was no incentive not to generate as many loans as possible

But someone somewhere initiated the change in the business model to allow or require lenders to lend money without requiring a % of the loan up front.

There also seems to be another liability brewing under all this pillaging and that is these counties that are having to do reassessments of property values down. I expect that with 4 + years of ballooning property values some counties are going to be in big trouble now that the projected tax base gone.

"There also seems to be another liability brewing under all this pillaging and that is these counties that are having to do reassessments of property values down. I expect that with 4 + years of ballooning property values some counties are going to be in big trouble now that the projected tax base gone. "

THAT, is the other shoe that has yet to drop in a vast majority of states/county's. They haven't reassessed property values for the past 5 years, many are due this year. So while property values have dropped, they haven't dropped THAT much to levels on tax rolls from 5 years ago.

People are looking at a HUGE tax increase this year, on top of higher interest rates.