sunday subprime saviour meltdown, page-3

plugger

I completely disagree with you, but only due to the amount of bad loans out there and the flow on affect it will have.

Money has been very easy to get a hold of, when that dries up, which it is doing rapidly, the consumer spending will dry up also, that will result in lower profits which will flow on to higher unemployment and the cycle continues on.

it'll take years, possibly several, for this part of the cycle to work its way through. Interest rates have not even peaked in all areas yet and even when they do, it'll take roughly 4 or 5 good drops and about 2 yrs for those drops to work their way through the economy.

Don't for a second think we've seen the worst of the subprime mortgage woes - we've actually only just seen the beginning.

My opinion is it will create a depression - since the 'great boom' is riding mostly on the wings of credit, that credit will have to be paid back, sooner or later - by someone.