Subprime Meltdown...Stop the Madness

As the lending industry continues to implode frustrations between buyers and sellers are on the rise. With the collapse of the Subprime market shockwaves flow through the industry. Subprime loans were made and packaged into groups and then were rated and insured by bonding companies and then sold on the stock market. As the housing market slowed down and values dropped in certain segments of the market many people were upside down with their loan to value ratios. The bonding companies were forced to re-evaluate what they had insured as "A" product and then downgrade some of the packages thus unable to insure them and therefore sending ramifications throughout the stock market. This could be the first time we have seen the decline in the housing industry have such an affect on our global market.

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