sub prime didnt prick the buble

wow still going... thought id move this into its own thread to stop hi jacking the other one..

and I guess i need to teach you guys how to read a chart maybe? you all whinge if I dont post one then when i do you ignore it.

FACT - American housing bubble burst early 2006
FACT - Subrpime loans are sold in all country all the time.
FACT - Not all subprime loans were dodgy
FACT - Subprime wasn't exploited until after 2003
FACT - All loans had a honey moon period that lasted a few years before the price went up, people being stooged thought the honey moon rate was the normal rate they could afford for the life of the loan. Any failures didnt become sales until a few years after they were sold when honey moon period ended.

Now how to read a chart? see the black line, that shows you how many subprimes were sold, as you can see up to 2003 we have normal amount of selling of normal sub prime loans (like in every other country)

2004. 2005. 2006 we have a period of dodgy loans being sold.. and obviously these wont fail for at least a few years.

So clearly through 2004 - 2006 you have more new loans sold than people defaulting.. And we know people are still defaulting today from those loans so they clearly did not all fail immediately after the honey moon period.

2006 house prices fall, THEN banks start to take a hit on the defaulters. before then they got their money back so didnt hurt banks.

2007 They stop selling dodgy subprime - house prices been falling 2 years already. and NOW there is more subprime selling than buying, which NOWw adds to sell presure.. 2 years after the fall !!!

I think I might try and teach my pet gold fish to sit on a chair..