The Credit Crisis Continues
I previously wrote about the anatomy of the mortgage business that was allowed to soar without pesky regulations in the first decade of this new century. The securitization system expanded with ever increasing exotic mortgages but it was also used for car financing and credit card financing. The "ripple effects" of the downfall of the securitization system are more accurately described as a slow flood that is affecting all who participated. The flood is moving slowly but is relentless. The government announced it will loan 85 billion to save AIG because it is unsure how its downfall may affect the world financial system. If the government does not know but its fears are correct, then the question is how long will the government be able to place 85 billion sandbags to hold back the flood?
Will the continuing crisis and federal response actually help any consumer? While the securitization system is completely discredited, I see zero viable help at the federal level for any consumer. Hopefully, I missed something.
Are you aware of any effort at Maryland state level to address the issue of securitization and the initial fraud involved in the majority of these mortgages?
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