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If you turn on the TV these days then you know the US economy is in trouble.

Over the next few quarters, as the dirty laundry is aired out, we will be learning more and more about the depth and severity of our problems.

Many of the banks and lenders, with the most blood on their hands, have already started to report record losses and write offs.

Housing bubble

The problems in the real estate market stem from the housing bubble that has been created (and over inflated) in the last five years or so. And like any bubble, eventually it goes pop, with the shrapnel dispersing far and wide. And the size of this bubble looks to be extraordinary.

Whenever there is a lot of money to made (and quickly), as there was in the mortgage lending market, then greed factors heavily into the equation. And one of the ways greed manifested itself in the housing market was through unscrupulous lending practices, also referred to as predatory mortgage lending.

Continue Reading “Predatory Mortgage Lending and The Subprime Market”