dear redmond, I aint an ametaur econmist that some others toat themselves as.
To me and this is very simple. NINJ (No income no job) loans where made using fredie mac and fanny mae guarantees. these were package and given AAA rating and sold. As the economy started to cool down, these NINJ people started a default, causing the sub prime crisis causing banks to start wondering what they had bought. this doubt led to the credit crisis in that the CDO were questioned as were any other gurantees made over securities. This casued consumer confidence to start to wane, only seemingly to justify a bigger world crisis. Everyone, seemingly stopped trading as there was no demand coming.
But Redmond irrespective what anyone says you will disagree and beleive you and the associate professor are the only ones right. but neither of you own property and are seemingly relying on a collapse of the world to allow you enter the property market.
