Sunday, March 11, 2007


I'd long been expecting the housing market to have major problems, though it didn't shake out as I first imagined. I underestimated the Chinese government's willingness to lend us money and assumed that an interest rate spike was inevitable. That didn't happen, but my second expected scenario did now that the subprime loan market is an absolute disaster. Foreclosures are skyrocketing and even the lending business itself is starting to implode.