Thursday, October 14, 2010
A very strange finance story
I'd better start with an apology: this is an American story (and there are some swear words in it.). As far as I can determine, it has no particular relevance to the way the UK mortgage system works. Lira gives a pretty good explanation of the trouble the big American mortgage lenders have gotten themselves into and opines that "This is a major, major crisis. This makes Lehmanâ€™s bankruptcy look like a spring rain, compared to this hurricane. And if this isnâ€™t handled rightâ€”and handled right quick, in the next couple of weeks on the outsideâ€”this crisis could also spell the end of the mortgage business altogether. Of banking altogether. Hell, of civil society. What do you think happens in a country when the citizens realize they donâ€™t need to pay their debts?"