Bernanke: Worst financial crisis since WWII

[Charnock]

"The intensification of financial stress in recent weeks, which will make lenders still more cautious about extending credit to households and business, could prove a significant further drag on growth," he said. "The downside risks to the outlook thus remain a significant concern."

The nation is facing its most serious financial and economic crisis since the end of World War II, he said.

cnn.com

[deltaguitar]

Ha Ha Ha. Everybody made a lot of money in the last few years in real estate. Now they are just giving some of it back. I don't see any problem.

[DividedThigh]

well the mortgage crisis was caused by govt policies, they should fix it, but dont leave the oversight in the hands of the culprits, you know the ones who covered for fanny and freddie, god help us, dt

[U376977]

Originally Posted by deltaguitar

Ha Ha Ha. Everybody made a lot of money in the last few years in real estate. Now they are just giving some of it back. I don't see any problem.

You are obviously out of touch. Tell that to the thousands of the newly out of work.

[U376977]

Originally Posted by DividedThigh

well the mortgage crisis was caused by govt policies, they should fix it, but dont leave the oversight in the hands of the culprits, you know the ones who covered for fanny and freddie, god help us, dt

Take it from someone in the mortgage business--simply not true. You could say a "lack of government regulation." However, the ultimate cause was the burst of real estate bubble. Then home devaluation. And it is estimated that %60 of all people who are in foreclosure can actually afford the payments. They choose to walk away because they do not want to wait for years for the value of their homes to come back. Dumb, now they will have to wait years for the foreclosure to get off the credit report to purchase again--7 years currently and fannie/freddie are talking of going to 10. And if they do not do a work out with their bank--whatever the bank eventully sells the property for the difference will be have to be paid before any future loan with another bank could be approved.