23 October 2007

US loan default problems widen

Banks are continuing to take losses and write down loans.
Poor quarterly results from banks across the US over the past two weeks suggest credit problems once confined to high-risk mortgage borrowers are spreading across the consumer landscape, posing new risks to the economy and weighing heavily on the markets.
This is not a problem limited to one portion of the market. It is wide spread, and it is systemic, driven by the Fed's, specifically Alan "Bubbles" Greenspan's, decision to create a credit bubble to address the dotcom meltdown of 2000-2001.

Too many people owe too much money, and much of this money should never have been lent out in the first place.

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