msaleem, a 22 year-old guy from Chicago, IL over at digg.com writes:
“The US sub-prime mortgage crisis has lead to plunging property prices, a slowdown in the US economy, and billions in losses by banks. It stems from a fundamental change in the way mortgages are funded.”
This is a graphic explanation even I can understand…
YUP! That PRETTY well covers it! However, one could add — sleazy slight of hand management of mortgages given out to people who anyone in their right mind would know were NOT strong on being able to maintain the repayment of those mortgages!
Selling off batches of these “water based” mortgages to small “money lenders” in Europe was also a kindly touch — helps to spread out the inevitable COLLAPSE of this shell game on several continents at a time!
Never let it be said that private enterprise is “honest” and working for the “benefit” of the poor and deprived! HOGWASH! To my mind, these days, calling oneself a “conservative” is the same as shouting out that you’re a societal criminal!