The day of reckoning has come

[Valuist]

Great article from July of 2005. Some great quotes in here: "One broker said only an idiot would get a 30 year fixed rate mortgage". Fleckenstein, as usual, was saying trouble was ahead:

http://www.msnbc.msn.com/id/8574006/

[The Judge]

for the post this aritcle led me to mgtprofessor now there is some insight as to how this thing got out of hand. All these sub-prime loans should have had mortgage insurance and that use to be the rule if you paid less then 20% down you had to have the insurance. (Best to go to Mgtprofessor from the cite connection in the article otherwise you get all types of Mgtprofessor cites and they aren't the correct one)

The borrower still paid a premium but the lender kept this as profit for making the risky loan rather then buying the insurance.

[skate]

Welp

he was correct, i wonder when he thought the situation started?


This guy says:

http://query.nytimes.com/gst/fullpage.html?res=9C0DE7DB153EF933A0575AC0A96F9582 60&sec=&spon=&pagewanted=all (http://query.nytimes.com/gst/fullpage.html?res=9C0DE7DB153EF933A0575AC0A96F9582 60&sec=&spon=&pagewanted=all)

the same:eek: