06-04-2008, 04:59 PM
I don't think anyone has argued it wasn't fraud. Seeing a house sold 3 times in a year, for an ever growing sum sure reeks of fraud to me. Why do you think the money earned from this is being stuffed in a mattress to never be seen again? Hell, most of it's already gone on landrovers and flat screens, right? The people earning the return on the MBSs havent lost anything, the people applying for the no-doc loans didn't lose anything, they just went back to mexico or wherever (see surnames in washington post foreclosure section), so really a few lenders will go under, some speculative flippers lost their shirts, and in a relatively short time, things are back to normal.
What came first? The credit crunch, or the housing value slide? Do you think when the value of oil peaks and corrects we're going to be in dire straights again? More or less a speculative mania going on there, since supplies are indeed doing just fine.
What came first? The credit crunch, or the housing value slide? Do you think when the value of oil peaks and corrects we're going to be in dire straights again? More or less a speculative mania going on there, since supplies are indeed doing just fine.