Steve, I look at the housing sub-prime problems as an extension of credit card troubles. Too many people are uneducated. I don't see pols bailing out the credit card companies, why bail out mortgage lenders who invested money at the highest risk possible?
True, it's just nuts to see so many lenders offering "free money" in the form of mortgages, refinancing, and credit cards. All this while identity theft is on the rise.
The lower interest rates, however, helped create the boom in real estate, which then led to the subprime craze, which inevitably leads to a burst bubble, etc.
Ultimately, it's just another instance of government experiencing the law of unintended consequences. Even supply-side economics isn't immune to this. The talk of bailout, of course, is meant to make up for said unintended consequences, but the reality is that it'll just create more.
Tenchusatsu |
