That is clever to suggest that when rates rise people will have to find another way to say that houses are affordable. But we reckon when rates rise, as they eventually must, a lot of new home buyers will find out that access to cheap credit does not make a house affordable. It just makes the amount of debt you owe to the bank a lot larger.
September 30th, 2009 | Dan Denning | 41 comments | ContinuedAll Posts Tagged With: "CDOs"
Merrill Lynch is Dumping Its CDOs (Collateralized Debt Obligations)
The sovereign state of Connecticut has filed suit against the rating agencies – making the usual charge, that they knew or should’ve known that those freak…
August 4th, 2008 | Bill Bonner | 2 comments | Continued