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To: dangthis

“No. I’m a builder and have worked in my field through three housing corrections. The meltdown originated because the tipping point was reached in the speculation reaching its saturation point.”

I think your perception is accurate and you were well positioned to see what was going on. This time was different. But the reason that this cycle didn’t top out from its own excesses as early as 2003 is because of the credit made available via the private label CDO market. This is the market that continued making credit available to buyers long past the point where traditional lending didn’t make sense. This is where the stated income/stated asset “liar loans” came from, the payment option ARMS, and other similar loans that began blowing up in 2006.


170 posted on 04/12/2010 6:58:02 PM PDT by Pelham (Obamacare, the new Final Solution.)
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To: Pelham

I agree. People were encouraged to jump in. That’s why I call it a Ponzi scheme.


172 posted on 04/12/2010 7:55:47 PM PDT by dangthis
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