Interest Rate Roundup

Wednesday, September 13, 2006

How easy lending destroys lives

I'm not going to go into too much detail here. I'll let the latest numbers from RealtyTrac speak for themselves:

* 115,292 properties fell into foreclosure in August. That's up 24% from July and 53% from August 2005.

* Florida foreclosures were the highest in the country at more than 16,500.

* Other markets that were the earliest to boom, are now proving to be the earliest to bust. And the pain is piling up. California foreclosures surged a whopping 160% from a year ago. Nevada foreclosures jumped even more -- 255%.

There was also a great story in Mother Jones magazine that talks about the neighborhood destruction that easy lending, mortgage fraud, etc. has caused in Cleveland. I hope Alan Greenspan rests easy after each $100,000 speech he gives, knowing that he didn't create a massive housing bubble (only local froth), and that he didn't encourage borrowers to take out ARMs at the absolute worst possible time in the past several years.


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