August 10, 2007
Maybe Time or Newsweek will put the biggest story in the world on their cover soon? Maybe?
Bonfire Of The Builders - By rushing into the mortgage business big-time, homebuilders helped fuel the housing crisis
A diverse cast of characters combined to launch the once-in-a-lifetime housing boom of the past five years. Traditional mortgage companies and banks unleashed a barrage of loans, many to borrowers with iffy credit histories who didn't bother to read the fine print about upwardly mobile interest rates. Wall Street egged on the often-reckless underwriting by buying vast quantities of home loans for repackaging as securities. Now that the boom has fizzled and foreclosure rates are rising, the important role of large homebuilders as lenders is also coming into sharper focus.