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The derivative explanation makes the most sense. http://www.opednews.com/articles/IT-S-THE-DERIVATIVES-STUP-by-Ellen-Brown-080918-354.html
But why would a bank still not lend to a company or an individual, with solid credit, which most companies and individuals still have? A 4% 90-day mortgage delinquency rate surely doesn't explain it. Also curious that we don't see a long line of bankers explaining themselves to the TV talking heads- just the usual journalists and politicians. Shouldn't the bankers be on the firing line right now? Are we just getting the usual smoke-and-mirrors now?
"You might look at this data and conclude that the problem right now is worse than the great depression. But the report points out that the delinquency rate on mortgages in the 1930's was much much higher than it is now: "Thus, at the beginning of 1934, approximately one-half of urban houses with an outstanding mortgage were in default (Bridewell, 1938, p. 172). For comparison, in the fourth quarter of 2007, 3.6 percent of all U.S. residential mortgages and 20.4 percent of adjustable-rate subprime mortgages had been delinquent for at least 90 days."
So back in the great depression nearly half the people were behind on their mortgage. Today only around 4% of people are delinquent."
So back in the great depression nearly half the people were behind on their mortgage. Today only around 4% of people are delinquent."
