Lend Mortgages 'Til You Drop!

Subprime troubles send stocks into swoon

Adam Shell did a very interestingly-written story on the economy’s response and explanation of Tuesday’s 243-point drop in the DJIA, rippling into many other dependent factors.

First, he points out the culprit in the title: “Subprime troubles”
This clearly states the issues to be discussed in the rest of the article and sub-articles.

The second paragraph explains the further urgency of the situation: “prompting investors to wonder just how deep the damage in the mortgage business will turn out to be.”

A sub-story follows, explaining more detailed approach to the individual companies who faltered, and the effect it will have on the given money-lending companies. Also introduced is the outcry for government assistance, with its pros and cons quoted.

Later on, the ripple effect concerning the reader was the S&P500. 2 companies of high interest were mentioned as losing catastrophic number percentage drops.

Also mentioned was February 27th’s market drop, and its relation to this current situation.

And the great graphs and links helped more to understand the economic language.

And concluded was a quote by suggesting action and ambition towards economic recovery.




But for my opinion, I believe this is so expected...

We have the PATRIOT ACT in place for the U.S. government to monitor bank-lending and react accordingly (cheating capitalism).

We also have a very desperate home-building mentality in common middle-class to high-class families. Most feel they have to borrow more money from credit cards, and pay the credit card comapnies with what they would pay their mortgages. Then their is a difficult money trail of sub-lenders in trouble and too confused as to who eventually pays back the loans. 61% housholds owe $1000+ to credit card companies.

And last but not least.. This hasn’t taken its full effect yet because it is early, but illegal immigrants can apply for credit, so the debt might never leave a trail.