Cue Muckdog extolling the virtues of free markets and all that is happening is the "natural" correction to bad lending practices.
This is how it is supposed to work! (ahem... at the expense of homeowners and the rest of middle class).
True free markets and laissez faire policies destroy the middle class. Strategically and fairly regulated economies benefit everyone.
Sedar also made an excellent point this morning.
No one is taking responsibility for the actual risk in issuing these mortagegs. Not the broker, not the underwriter...nobody.
Once it travels a bit down the chain, they are just bulked together and sold based on risk rankings, not actual risk. This is a complete joke.
Posted by Simp at March 26, 2007 12:49 PMIt's already priced into the market. This is why GDP is below trend. But the subprime numbers are such a low percentage of the total.
We are in the second year of the housing correction.
Posted by muckdog at March 26, 2007 02:01 PMWe are in the second year of the housing correction.
The last "housing correction" in these parts lasted 17 years. The sub-prime lenders are going to make the S&L scandal of the 80's look like child's play when it's all said and done. I wonder if we'll bail-out the wealthy again?
So we have a slight increase in the economy, all driven by the top 1%. My question would be -and I know the answer- who pays the price when the economy slides into recession? Hmmmm...
Posted by phidipides at March 26, 2007 05:23 PMThere are no signs of a recession right now, though.
But to answer the question of "who pays," everybody does. There are roughly three phases to an economic slump. First, the equity markets take a pounding. (The stock market is a crystal ball into the future of the economy). Second, jobs take a pounding. Third, government tax revenues take a pounding.
There are no signs of a recession right now, though.
Maybe not in Happy Fun Repubilcan'ts Can Do No Wrong Land. Out here in the real world, jobs are down (when you can get any data on the situation. Funny how the Republican'ts stopped providing that data when it started reflecting poorly on their lack of economic policy), the new jobs are mainly crappy min wage stuff (when you can get minimum wage. Funny how coproations that pay less than minimum wage aren't being aggressively prosecuted under the current Republican't administration), and the only people getting richer are the top 2% (because of the massive tax giveaways to them from the current crop of corrupt Republican'ts).
Keep on flogging that Republican't gospel there, WallowingInTheMuck. Hope the thirty pieces of silver you're getting from the corpoweasels is worth your soul...
Posted by (: Tom :) at March 27, 2007 06:37 AM