Time capsule – from 14 March 1998 when the Carlyle Group started to put pressure on Fanny May and Freddie Mac, how quickly the capital on which Bear Stearns dried up and then went super bad. The blog seems to have stopped just as things started to get nasty for the early “victims” of the credit crunch calamities that followed.
Economic stimulation is a 180 degree reversal from the cold logic of monetary policy. Continued market speculation inflated expectations but the average person could only see property as a path to financial wealth and independence. It would have been but for two immutable facts:
The Credit Crunch has been in the news for over a year and many have not noticed anything except the news being reported. But for some it has been horrible and life changing. Houses bought on zero or little equity have turned into negative equity and being forced to sell in those conditions is locking that loss into reality.