The mortgage crisis is upon us. I wake up today and find this article about people living in their cars.
Most of us have seen this coming for awhile but it’s still amazing that nothing was done sooner. It was just a cycle of developers getting money, builders putting up housing, and brokers finding financial institutions that would give people loans for houses who really couldn’t afford them. It just kept going on year after year.
A lot of people have made cash in the housing industry over the past few years and now the economy will have to adjust for fewer people buying houses. That means builders will suffer, banks will suffer more and also smaller brokerage houses who specialize in bad credit home loans will suffer.
Of course, when everyone makes money no one sees any harm…it happens over and over.