Alex, just to inform you.. the so called “crisis” you are referring to was happening from about 2001-2006. This is when lenders would loan more money than would be logical to buyers who probably shouldn’t be getting home loans in the first place. HELOCS were given up to 100% LTV. Instead of proving you made a big salary you could just “state” any amount you wanted. The era of the negative savings rate was born and embraced in America. It became trendy to live well above your means. This made things look good(on wall street), and it made people feel rich, but like many here have fore casted, this couldn’t last forever. This is likely the crisis, the completely irrational, irresponsible, ill-regulated, and out of control credit ORGY that has gotten us into this mess.
.. what you are seeing now is merely the correction, or the cleanup, or the … detox stage… for many, this will be uncomfortable to say the least. I say it is only a crisis to those who have partied too hard.
