Thats all fine for those who dont have sub prime loans. But what about the lenders left holding the bag. The lower credit lenders are vanishing and the little that remain will drastically increase lending standards. Not to mention added supply of homes getting foreclosed on coming to market. Demand for houses will drop and prices will follow subtracting equity from all homeowners prime and subprime. recent purchases with low down payments will go to negative equity, and there will be further increases in foreclosures.
