More housing crash diagnostics. Where has all that talk of a "new era" gone? The danger is we are indeed slipping into a "new era"; one characterized by high interest rates, financial panic and recession.
Is it different this time? It is never different.
The finger pointing has begun. Who is to blame for the housing crash? There are so many culprits it is difficult to choose. However, one name stands out: Alan Greenspan.
Here is an intelligent clip from Australia, examining the Bear Sterns hedge fund collapse. Well worth watching.
Mortgage rates are spiking, defaults rising and and inventories at all time highs; as the man in this clip says "if anyone tells you that the housing market has bottomed out, you have my permission to laugh in his face".
This clip isn't about the housing market. Rather, it contains a stark warning about the dangers of private equity firms. Today, perfectly good companies are being loaded up with debt in the pursuit of short term profit and tax advantages. If there is even a slight downturn in economic activity, many fine American companies will struggle. It is all so unnecesary.