this subprime is going to have huge effects. i have been all over this one in the past week. i talked a lot about this at least a year ago...if i could find the thread you would think i was a genius. what is happening is that the people who bought homes who shouldnt have been doing so (cause their credit sucks) start to have their interest rates rise, coupled with the fact that their house is going down in value, this creates a bad situation for the banks. they now have collateral that is not even worth the value of the loan, and the owner cant pay the interest anymore.
anway, this is going to crush the housing market (if money is more expensive, less home buyers, less demand), and we all know the housing market plays a big role in the economy. what happens to all these guys building high rise condos around me?
anway, this is going to crush the housing market (if money is more expensive, less home buyers, less demand), and we all know the housing market plays a big role in the economy. what happens to all these guys building high rise condos around me?
Relax and be happy.