Originally Posted by liquidmoe

The only real issue is the housing crisis, which is basically just a problem of the information age, where there are so many things happening so rapidly that people just lose sight of the simple things.

The crisis is just bad lending, pure and simple. But because it went unabated for several years it raised the median home price drastically and in the largely populated cities despite the crash the prices havent really come down (ie: NY).

The banks that gave out this bad debt are now paying the price, and yet because everything is all traded, packaged up and resold, its mostly the end consumer, who bought the house and cant make the payments thats getting to get the worst of it.

No major bank has yet closed as result of this and in fact because they are so large, the price drops will only motivate outside buyers to pick them up because they all still have core competencies but just got caught up in bad trend trying to turn a buck all so that their year end financials wouldnt get overshadowed by other banks doing the same thing, not realizing that these new schemes cant cover up the fact that if you lend money to people who cant pay you back eventually it will bite you in the ass.