February 26, 2007

Subprime meltdown seen as #1 risk to world financial system

The effects of the Great Housing Crash will be enormous. Nearly every aspect of life around the globe will be effected in some way. When you have massive and historic worldwide speculation enabled by massive and historic leverage, and then the ponzi scheme ends, the unraveling will be epic.


I sure wish realtors and regular folks understood all of this. Ignorance is bliss, but only up to a point.

Yes, my friends, loyal HP readers and REIC trolls, our day is here. The housing crash and Great Unwinding is, and will be, the biggest story of 2007. And 2008. And 2009. And 2010...

Worst risk to market? Subprime mortgages

WASHINGTON — Growing trouble in the subprime mortgage industry poses the greatest risk to financial markets right now, according to a survey of business economists to be released Monday.

The forecast by the National Association of Business Economics (NABE), which polled 47 top economists, called the subprime sector a more serious concern than hedge funds, which came in second.

Housing will continue to be the biggest drag on growth. After five years of a boom market, housing starts have plunged in the past year.

9 comments:

Anonymous said...

This is the week! Lots of ugly data and announcements to come

Get ready everyone

Richard said...

Keith said...

"The housing crash and Great Unwinding is, and will be, the biggest story of 2007. And 2008. And 2009. And 2010..."

Nope - I have said this for over a year now Keith...the housing crash (when compared to the Die Off) will not even represent a zit on the ass of life.

However....the housing crash is the pulled trigger for the unraveling of the economic collapse...

See... just when we should be pulling out of this depression...there will be no more cheap oil....so....we are now on the downside of Hubberts Peak...no cheap energy to jump start a failing economy...

Then food becomes scarce...and wammo 90% of the human species dies.

Cheers!!

Anonymous said...
This comment has been removed by a blog administrator.
tmaioli said...

Hang on the Roller Coaster is reaching the peak just before gravity takes over.

Anonymous said...

Love it.

Sub-prime was the screwup contagion and hedge funds which trade the mo, ramped it up and are going to ride it down with great force and velocity. I wonder how many are short the dollar?

Anonymous said...

yup, the worldwide economy is gonna crash cause 10,000 U>S house debtors, lied on their loans and paid to much, and were counting on outrageous non taxed appreciations in two years time or faster.. sounds right to me. stranger things have happened!!

Budvar said...

10,000?? Lied??
Give me a break, FFS, 10,000 a week during this run up.
How in the hell can someone on $30k a year get a mortgage of $300k without telling porkies?

Anonymous said...

richard is a bonafide moron. whammo!!!

Anonymous said...
This comment has been removed by a blog administrator.