I hate being right ...yet more on the credit crisis.
Just in time for Christmas. Yay!
Back on Novemember 6 I blogged about the mortgage crisis that engulfed many banks and was threatening- and is threatening - to swamp the economy. Meanwhile, many neighborhoods are being swamped by respossesions and abandonment, which is then leading to lowered tax bases and decreased services for cities and surburbs. I was wrong about the extent of the problems- not only young and minority buyers were affected. This credit crisis has worked it's way into well healed suburbs, and it is threatening the very foundation of our economy.
Now, the Fed has proposed ways to make lending more secure- but it is far too late, and the proposals are weak at best. And of course there plenty of pleading about a 'bailout'from so called liberterians and free marketers. ( Is it just me, or are free marketers/liberterians basically teenagers in grown up form - "I wanna do whatever I wanna do, without restrictions?" ).
And lets not forget the pension money that many Europeans and Asians had invetsed in many of these risky bonds that comprised much of the funding for these loans. Whole communities proably thought they were getting a great deal with the hypothetical returns. Now, alot of that money may be lost.
Will this go further, making fools of us all? But of course it will.
On that happy thought- Happy Christmas, all!