More Mortgage Mess

Last week I mentioned that the foreclosure mess could get a lot worse. Here is the article... and tonight I read John Mauldin’s post that spells the dangers out a little more clearly.

If you want to understand the seriousness of the his latest newsletter titled the Subprime Debacle…Act 2

If they don’t fix this situation soon we are going to have huge problems nationwide. Mortgages are already hard to get, if this continues it may be impossible to get a mortgage because there won’t be any investors willing to buy them.

Here is the money quote from John Mauldin’s latest post. If this doesn’t shake you up then you don’t have any nerves at all. “This is a major, major crisis. The Lehman bankruptcy could be a spring rain compared to this hurricane. And if this isn’t handled right…and handled right quick, in the next couple of weeks at the outside…this crisis could also spell the end of the mortgage business altogether. Of banking altogether. Hell, of civil society. What do you think happens in a country when the citizens realize they don’t need to pay their debts?”

I have to believe that an adult will step forward soon to put a stop to this foolishness.