Sub prime mortgages

**PRICEPLUS** · 03-16-2007, 08:35 PM

That was an interesting read we'll have to waitand see how it all plays out in the end!

**jIM_Ohio** · 03-16-2007, 09:22 PM

I never thought we were in a housing bubble, I thought we were in credit bubble.

People were tapping credit to live in the here and now.

The current climate is going to bite those people. Anyone depending on consumer spending is going to feel the slow down. I think corporate earnings can take the "bad news". Oracle and Microsoft should not feel the pain the same way a Mattel does, for example.

**PRICEPLUS** · 03-16-2007, 10:11 PM

Well some people are in for a real hurting soon when the bubbles burst and the piper has to be paid!

**meaghanchan** · 03-17-2007, 07:53 AM

I think that there is a housing bubble, though, and that the availability of easy credit contributed to it, and that they fed on each other. If credit is easy, and housing is a sure-fire investment, buy as much house- or more- than you can afford- right? Prices were going up, so people would pay just about anything to own property, especially in areas like New York and California. Which led to people getting into ARMs, interest-only mortgages, buying way more house than they could afford. Which is what's led to the subprime bust that's going on right now.

Sub prime mortgages