Newspeak Is Alive And Well, And Living In Our Homes!

Posted on Sunday, March 11 at 11:59 by RPW
Now, as then, Wall Street firms and entrepreneurs made fortunes issuing questionable securities, in this case pools of home loans taken out by risky borrowers. Now, as then, bullish stock and credit analysts for some of those same Wall Street firms, which profited in the underwriting and rating of those investments, lulled investors with upbeat pronouncements even as loan defaults ballooned. Now, as then, regulators stood by as the mania churned, fed by lax standards and anything-goes lending. Investment manias are nothing new, of course. But the demise of this one has been broadly viewed as troubling, as it involves the nationís $6.5 trillion mortgage securities market, which is larger even than the United States treasury market. Hanging in the balance is the nationís housing market, which has been a big driver of the economy. Fewer lenders means many potential homebuyers will find it more difficult to get credit, while hundreds of thousands of homes will go up for sale as borrowers default, further swamping a stalled market. http://www.nytimes.com:80/2007/03/11/business/11mortgage.html?ex=1174276800&en=9d974434961b0a94&ei=5070&emc=eta1 Has this been foretold? http://www.shloky.com/files/housing%20boom.pdf

Note: http://www.nytimes.com:... http://www.shloky.com/f...

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