The Snowball Is Getting Bigger

The tipping point is closer than we think. Four of the nation's largest banks borrowed 500 million dollars each and said that they were doing it to support the Fed and the overall market. Other banks have done it too. So,what's up? In the last few days several billion dollars has been injected into the market to "increase liquidity" in an effort to make investors comfortable. Well, I hope they are, because I'm not. It won't help the hapless consumer on the bottom of the heap, with the weight of all that debt crushing them and the only part of their income that is increasing, is the percentage that no longer belongs to them.

Considering how quickly some of the new housing developments were built, it should be no surprise that attention to detail wasn't as good as it should have been. Whether or not it has to do with a good percentage of foreclosures is open to interpretation.

The people who are getting laid off as the mortgage banking industry fold in on itself, were considered good credit risks and probably owned their own homes. For a few more months anyway, then they're going to be part of the problem. 25,000 people since the beginning of August with half of those in the last week, some communities are going to be hit hard. Not good, and that's putting it mildly.

Well, that was cheerful, wasn't it?