interesting article jhook, but i do have a few questions.

much is made of subprime loans, but are the loans written about in this article (30 year with a higher initial interest rate) the problem dragging down the banks and investment firms today? while some of those homeowners might be struggling, it seems that the orgy that occured between the fed, mortgage brokers, and investment banks is the real problem... not minority home ownership described in that article.

it seems that the bundling and selling of mortgages to reduce the risk (laughable now, huh?) is the real problem... since these mortgage securities are now impossible to value and are carried on the books of the businesses that have failed or been bailed out... and which the us government will now probably be buying.

these adjustable rate mortgages that were then sold and combined with other subprime mortgages while the rating agencies said they were high quality securities. the low interest rates under greenspan kept the housing market inflating and all the players (mortgage brokers, investment banks, hedge funds, banks, market speculators, real estate speculators, home builders, home owners tapping equity, retailers) went into an orgy of greed found in so many bubbles in the past... and it will happen again with the next tulip mania.

as far as blame it goes around. but i think it is dishonest to not lay a bunch at those who felt that deregulating the markets is a good thing (and had 100% control for the majority of that time).

oh well, whatever happens the victims (us) will be negatively affected regardless of political affiliations.... even those who save, live within our means and didn't get some in this latest orgy of greed.