Links: Subprime Works

And now for a break from all the Spain posts...While visiting the Volokh Conspiracy, I saw a cartoon presentation showing how the subprime "crisis" developed. Some foul language at the end, but it's a pretty accurate depiction nonetheless.

My own thoughts on the issue are simple. It takes a huge amount of materials and manpower to build the average 3 Bedroom/2 Bath family home - the design, engineering, construction, and permitting costs involved are tremendous when it all adds up. If you want to buy a house, you better be able to make enough money to pay all the people who worked on it, not to mention the interest. Whoever thought that it was a good idea to let people buy houses with no money down has probably been watching too many Carleton Sheets infomercials...