Subprime Mortgages Crisis
January 7th, 2009
Subprime Mortgages Crisis
Question: The subprime mortgage crisis and the big 3?
How is it possible for the subprime mortgage crisis to be so bad until it affected the car industry. Of late, the big 3 are on the verge of bankruptcy. A rescue package has now been put forth by the Bush Administration to give them some reprieve.
How is it possible? How can the big 3 face bankruptcy? What has cars got to do with houses?
Answer: Unfortunately, we are all in it together. Rather than being in a recession starting this quarter, we are now already starting the 5th quarter of a deepening recession. The finance market was simply the straw that made the administration fess up about how deep we are really in. The same people that can't afford those mortgages are the same people that can't afford new cars. The chain isn't going to stop there. Look for those box stores in those malls to crash next and we can't afford to bail them out. Then all of those overpriced crappy restaurants, gone. You can't build an economy out of screwing the next guy out of his nickel forever; you actually have to have substance to make headway, we don't.
Executive Compensation and Subprime Mortgage Crisis
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