I am sick and tired of hearing people blame, “subprime.” The subprime sector of the debt market is not the cause of anything. It is merely a symptom of the popping of the twin real estate and liquidity bubbles.
Last week, Countrywide said, “more borrowers with good credit were falling behind on their loans,” and you would think that the media would get the idea that’s it’s not about subprime.
The Wall Street Journal reported that lenders are tightening standards across all credit sectors and you would think their affiliate, CNBC, would stop “reporting” about, “worries over subprime.”
Fraud discovered at the absolute highest level of the real estate market still doesn’t dissuade people from talking about the subprime sector.
The reason they won’t acknowledge the truth is this: admitting that it’s not subprime means admitting the problem is not, “contained.”
“Never underestimate the power of denial.” -Wes Bentley
LIV