At its root, this mess is all about housing

Or so says this editorial piece in today’s WSJ. I don’t pretend to know anything about collateralized debt obligations or whatever is being flung around the canyons of Wall Street these days, but the writer makes a persuasive case, to me, that it’s the housing collapse and the junk mortgages that collapse exposed that are causing our current difficulties.

Of course, if I did know anything about this stuff I could read with a more critical eye and perhaps find flaws in the argument. But since I don’t. I’ll leave that task to you financial wizards.

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One response to “At its root, this mess is all about housing

  1. Anonymous

    Feel free to disregard my observations as I have not read the WSJ article you reference.

    Still, from my perspective, the worldwide financial meltdown that we are currently experiencing finds its roots in two fundamental areas: (i) deregulation of the financial markets coupled with a lack of government oversight and (ii) the flagrantly loose monetary policy practiced by the Greenspan Fed.

    To say that subprime/housing is the cause of current problems is to blame the effect and disregard the cause. Only by understanding the cause of the problem do we have any hope of correcting the situation; and, hopefully not repeating the same mistakes again.

    Retired IB’er