This subprime will have enormous effects. I've been around this one in yesteryear. I spoke a lot about this at least a year past. . .if I could find the thread you would think I was a genius. What's occurring is that the men and women who purchased homes who shouldnt have been doing this (cause their credit sucks) start to have their own interest rates increase, coupled with the reality that their house is going down in value, this creates a bad position for the banks. They have collateral that is not the value of their loan, and the attention is paid by also the proprietor cant .
Anway, this will conquer the home market (if cash is more expensive, less property buyers, less need ), and most of us know the housing market plays a major part in the market. What happens to these men building high rise condos around me?