Sub prime lenders are being pretty stupid with their lending.

However, it takes two to tango. A lot of people borrowing money are being pretty stupid as well. They are jumping into loans without investigating the responsibilities and ramifications.

There are people who are getting who do not have jobs.

The lenders are stupid to give these people loans and the people accepting these loans are stupid as well for taking them.

One of the biggest problem with the US is that people are just too eager to take on debt. People are not saving money. They are going deeper into debt.

According to a recent , the past year was the first time since the great depression that more people in the US went into debt than saved.

There are even people who make about $50,000 a year and have $80,000 in credit card debt. They rent a house and have all sorts of nice things in it.

Of course, those nice things won’t last nearly as long at the credit card debt.

Too many people are spending tomorrow’s paycheck today. When tomorrow comes and the paycheck has to pay for what they bought earlier they will suffer.

Besides, much of the growth was fueled by a “robust” RE market the past 6 years. Now it is coming apart like the proverbial house of cards.

Well actually mortgage defaults going up has been in the news for at least a year, things are just coming to a head now. Coupled with reduced domestic funding available to finance this war for oil, lots of municipalities have had to cut way back


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