I love ebay sometimes...

[Evan]

I think a false assumption that a lot of people are making here is that all this "created" wealth like what Andy talked about is a good thing and how the market should have stayed. Like I said, this is a correction, not a crisis.

Someone give me some numbers that says this isn't a crisis*.

*A crisis doesn't necessarily mean government intervention. It just means that the situation is greater than the normal business cycle correction.

Its hardly a "crisis", a word that has been so overused and misused that it doesnt mean anything anymore. "Crisis" is a price shock to the tune of "no one can afford to eat anymore"

We are talking in circles now so I guess we will just have to agree to disagree. Btw, its your job to prove its a crisis, not mine to disprove it Mr. Sky-is-falling

Fraud was clearly committed on a large scale. No way someone gets a 300K-500K loan without mortgage brokers inflating income "estimates." We won't know how large until the Feds start investigating this stuff.

Its called risk. Risk that the MBS buyers assumed (whether they knew it or not, there is no free lunch and no gauranteed 5% security!!!).
This is the correction.

I got approved for a $650k loan when I made a lot less money than I do now, and had a fresh truck payment to boot. There was no fraud, just overzealous loan writers writing loans too agressively. Those who bought those mortgage backed securities took on that risk, and they got hit hard for it. I dont know how else to explain it Andy, there is no gaurantee of returns on an investment, and its not a "crisis" if/when the market corrects.