I was reading today an article that took on the economic crisis. Is it over? I have thought, even before the so called bailout, that there would be more failed banks from the sub-prime mortgage mess. A mess caused in part, by the intimidation and lawsuits from Acorn and Obama. (Obama took Citibank to court to force them to issue subprime loans)
Now, according MSN, it may go deeper then that. How? According to Gregory Larkin.
"The next meltdown will be in credit cards," says Gregory Larkin, a senior analyst at research firm Innovest Strategic Value Advisors.
According to the article there are several other economists who agree.
Adds William Black, the senior vice president of Moody's Investors Service's structured finance team: "We still haven't hit the post-recessionary peaks (in credit card losses), so things will get worse before they get better."
And the $700 billion mortgage bailout won't be a lifeline for credit card issuers.
So folks, buckle up, it's likely to be a bumpy ride.
---
go ahead share your thoughts with me now.
Get Paid to Sign Up, Refer Others, Read E-Mail, Complete Offers, and More!
The failure was bi-partisan. George Bush pushed the Ownership Society and idea of sub-prime loans as much or more than the Dems.
ReplyDeleteThe Obama lawsuit does add another dimension though, when you consider the concept of responsibility and accountability from the banks. It simple terms the banks failed because they deserved to. Now if they were FORCED to engage in risky business practices they did not want to, that's another story.
Of course, the sub-prime mortgages for under-qualified borrowers is only part of the failure. How many "QUALIFIED" borrowers took out PRIME loans that they really could not afford and/or for properties that were overpriced and doomed? And how many of these people ( many who COULD afford the payments) decided they didnt feel like paying when their gamble failed? I bet a lot.
Barack Obama will be the next president, and ACORN will become the next HUD, look at all the polls, besides who wants 4 more years of republicans?
ReplyDelete