I've been following this since the credit interbank crunch in August 2007, and now it appears the problem, with adjustable rate mortgage resets about to happen in March 2008 and April 2008, is about to get a whole lot worse.
Inasmuch as government bailouts seem to be the prevailing sentiment, it also appears the problems are so large, government intervention won't help.
Read the whole thing...
Hat tip: Mortgage Implode-o-Meter
... what happens when a government creates an expectation on Main Street that the government is there to make them whole after the markets, run by racketeers, make off with their savings. We aren't seeing any U.S. citizens taking to the streets. But as the economic problems intensify in 2008, the stresses will crop show up ever more obviously in the political process and perhaps the crime rate. The squeaky wheels on Wall Street got the first grease, but as the squeaking spreads, so shall the grease. |