12-17-2008, 05:38 PM
This is, I believe, the source of that particular story:
http://www.sfgate.com/cgi-bin/article.cg...llloyd.DTL
It's convoluted for sure, but similar tales can be told all across the bubble, all throughout the socio-economic spectrum as well.
The big misconception is that this is just a "subprime" problem and a real estate or housing problem, but it's not. It's a fundamental issue with having an economy too heavily reliant on credit (which is really another name for debt, but 'debt' is a four-letter word) and the expectation that rising asset prices can continually outpace income growth and real productivity.
http://www.sfgate.com/cgi-bin/article.cg...llloyd.DTL
It's convoluted for sure, but similar tales can be told all across the bubble, all throughout the socio-economic spectrum as well.
The big misconception is that this is just a "subprime" problem and a real estate or housing problem, but it's not. It's a fundamental issue with having an economy too heavily reliant on credit (which is really another name for debt, but 'debt' is a four-letter word) and the expectation that rising asset prices can continually outpace income growth and real productivity.