Sep

24

Crunch

September 24, 2006 |

Over at The Agonist a guy has put together some graphs about the US housing market. Not pretty.

If it was just the housing market it would be troubling but not tragic. But the fact is that the leveraging and the refinancing which has been going on for the last three or four years means that borrowers and, ultimately, lenders may find their equity in the tank. That can hit the eentire economy.


Comments

1 Comment so far

  1. Alan on September 25, 2006 8:21 pm

    I have read a bit on these non-traditional loans and can’t believe the insanity of a system that allows non-payment of even interest. I have no issu with a 50 year term, etc., that helps the entry market but a loan system that allows so many people to get in way over their heads to the point that there is risk to the entire enconomy is nuts.

    Did that comment take?

Name

Email

Website

Speak your mind