We finally came full circle relative to subprime, mortgage blues, and the subsequent recession. What we could not see in 2006 are new laws enacted today. Under sweeping financial overhauls that have now passed the House and Senate, home buyers won’t be able to get a mortgage without producing pay stubs or other evidence they can make their monthly payments.
From 2007 through 2009 Mortgage Blues reported on the subprime crisis. Daily articles highlighted a nation in turmoil as financial greed and abuse rocked the country.
We went to the Country Store in our town. The people shopping inside were either men with lists or the wives of the men sitting outside on the bench in the sun. The conversation outside went around to the recession being over and the amount of stimulus money spent. It is strange that the men in the country are treated with disdain, but can provide such insight into the day to day problems. The following are snatches of various conversations:
This is the quote of the week at Mortgage Blues: “”People have been celebrating that we’re through the financial crisis, but the underlying issues are all still there,” said Dean Baker, co-director of the Center for Economic and Policy Research. “We’ve lost trillions of dollars in housing wealth, and consumption’s going to be weak. It’s not the ’30s, but there’s really nothing to boost the economy.””
The problem went far beyond mortgages and opportunists. Greed almost stopped the American economy. Too many unemployed, too many reduced credit limits, and too many homeowners are upside down in the value of their homes.