Okay, I know that the last thing anyone wants to read on a holiday is a
set of BusinessWeek articles on mortgages, but it's important. The articles lay out the full depth of the problem with various mortgage products -- specifically option ARMs but also no-docs, >100% mortgages, etc. -- that have been marketed to people who clearly can't afford them and won't, in the post-bubble real estate market, have the home equity to make good even in a foreclosure situation. Oh, and the revenue's already been booked by the lenders, even though the lenders are, in effect, lending the people the money to make those payments.
Yet money is still pouring into this impending train wreck of uncollectable insufficiently-secured debts. It's not like the US government will bail out companies that make ill-advised real estate loans...
oh, right, it has before.