Explaining the sub-prime thingie

[GodPossessed]

Subprime Mortgage Crisis

[1Samuel8]

We have seen this before.

The cartoons lack one crucial thing: it does not answer How are these lenders able to supply such loose credit?

The answer is ultimately the inflation of the money supply by the Fed.

[GodPossessed]

Originally Posted by 1Samuel8

The answer is ultimately the inflation of the money supply by the Fed.

Its the tumor that the citizen thinks is a vital organ.

[S.Vashti]

Mm, no not that. It's was a great huge pool of international money just waiting and willing for investment. Listen to this clip.

[1Samuel8]

Originally Posted by Chris Porter

was a great huge pool

That is what she said.

[Sauron]

Originally Posted by GodPossessed

Subprime Mortgage Crisis

Can someone make this a sticky? It's important enough, and I hate having to hunt to find it.

[freemonkey]

Originally Posted by Chris Porter

Mm, no not that. It's was a great huge pool of international money just waiting and willing for investment. Listen to this clip.

Thanks. I heard this when it first aired on This American Life and its worth hearing it again.