Ex-SD: Since we both spend quite a lot of time on this blog, it is probably safe to assume you are staying fairly well abreast of developments in the housing market, and the economy at large.
I have been noticing a new behavior emerging amongst reporters, economists and bankers: The willingness to say that no one has a clear cut picture of how truly bad this might become, and to be prepared for the worst.
Just a few months back, Bernanke and Co. (and I include pretty much all of banking and finance in that little cabal, as well as the reporters and economists associated with the industry), were pronouncing the problem “contained” and asserting that prompt action by the FED and the ECB would bring a swift end to things.
Now, there is very much a sense that this might get out of control, and no one is entirely sure how big the blast pattern could be. Kind of alarming and refreshing, all at the same time.
