The Sub-Prime Blame Game

Thank goodness the Plame Game is over and Scooter Libby safely convicted for-what exactly was it?  Now we can concentrate on the next Big Thing: the meltdown in the sub-prime mortgage market. As a broker acquaintance commented: "Anyone could have seen that was coming."After "Bush Lied" it's "liar loans."Companies which specialize in making loans to sub-prime customers are falling right and left. Marginal borrowers are having trouble paying the interest on their variable interest rate loans. Poster child for the industry's troubles New Century Financial, has been cut off by its lenders, de-listed from the New York Stock Exchange, and barely surviving. Other companies are having so much trouble and downsizing that the market for office space faces a sudden glut in places like Orange County, CA, where the industry is concentrated.The only thing that is uncertain is just how President Bush is to blame for the whole thing.  But never fear: the...(Read Full Article)