If you want to understand this better then listen to Mark Levin’s show from Friday.... go to his site and click on September 19th and play the show... he lays it out in all it’s glory and this does go back to the democrats... back 30 yeara and laws passed to force lenders to loan to make subprime loans... and more what he doesn’t say on his show is one of the people who sued Citibank to force them to make subprime loans was non other than Barack Obama.
That was a great analysis by Mark LEVIN, the Great One pointed to the true root of the financial problems...the Left/Dems unintended consequences of bad policies regarding mortgage loans...the culprits are primarily Jimmy Carter’s CRA, Clinton’s CRA changes and Reno’s DOJ jackboot enforcement and the Rat infestation of Fannie/Freddie/AIG, etc...
This whole subprime thing threw me into a loop, all the grand talk. Subprime, subprime what does it mean? Duh, it finally clicked. To think I used to understand mortgage loans, had to install, and maintain the software to process them, write conversions for one package to another, run and understand amortization schedules, even know the formulas, julian dates and interest calculations, etc. So I HAD to know what I was doing and do it right. Of course, there was help and checks and balances. But back then, we were just moving beyond fixed-rate loans into variable-rate, loans "tied to prime". Then my daughter got a balloon loan, didn't sound good, but never really looked into it.
But I've forgotten much of what I ever knew since I haven't worked with it for so long, but that was just the nuts and bolts of it, and only understood in a vague way how the housing market and all loans and credit affected the economy. You can't know everything about everything because it's all so specialized. I think that's why people like me now are having trouble understanding it.
Closer to home, a nice duplex went on the market down the street and around the corner. If I were situated differently, not necessarily money but managing all that and the headaches of keeping it maintained and screening tenants, I would have bought it in a heartbeat if the price were right. I remarked to my daughter about it, older, single-story, side-by-side, bay windows, nice side lot, nice place, several similar of same design around town. The for sale sign was only up for 2 or 3 days, place was only on the market once in the last 40 years before that that I remember. Last night there was a sold sign on it. So there are some deals to be had out there, and real estate is still moving in good areas. People are picking up bargains. But it will be sluggish in parts of the country.