Stymied trying to figure out the “credit crisis”, “subprime meltdown” or whatever it is being called today?
Yeah, me too — though I’ve tried and learned a LOT lately about mortgage markets. It’s a very complicated matter, involving things like “collateralized debt obligations” (CDOs), and “liquidity puts”.
Don’t know what a liquidity put is? Don’t feel bad. Even Robert Rubin, a former Secretary of the Treasury and current Chairman of Citigroup wasn’t familiar with the term until Citi got into trouble with them. (See Fortune article on why Rubin and Citi didn’t see the subprime mess coming.)
You can read for days on end about the crisis, and still sit there scratching your head in total confusion.
Enter the New York Times.
The Times has a great article out today, Can’t Grasp Credit Crisis? Join the Club.
It explains in relatively plain English much about the credit crisis.
.
Hat tip to Scott Brunner at VAR Buzz.
[tags]Credit Crisis, subprime meltdown[/tags]
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I think this is why people are dumbstruck and can’t move. They don’t get it and how the market and economy work together and how buying will help and some feel betrayed as they struggle to pay there mortgage and taxes and insurances and feel how does any of this help them but only hurt there home value.
The US is getting a great hands on experience about the economy and how the real estate and lending market affects it. What the Feds and Treasury have to do with corrections and assisting the cautiousness of the people.
We all are learning more about lending and homeownership and what caused this lending crisis and why people are not spending and why companies are collapsing and why the Feds and Treasury are so eager to correct the situation.
Well it all started when Clinton signed the no capital gain tax bill if you own for 2 years or more as your primary residence.
Also, he allowed wall street firms to package and buy loan packages from banks and lenders so guidelines became relaxed.
Bush focused on avenging his father’s humiliation in Iraq, gas was $1.69 right before invasion, now it’s ?
Don’t mistake me for a republican…more of a die-hard liberal.. Yeah !!