If you have wondered how supposedly big banks got into trouble with subprime mortgages, here’s a little education.
The moment these people couldn’t pay their oversized mortgages anymore, it was only a matter of time before the pack of cards started to crumble.
Unlike here in the UK where you are still liable for the shortfall if the value of your house drops and it’s repossessed, Stateside, any fall in value is the bank’s problem.
Hence the notorious Jingle Mail
When you live in a credit society [pretty much the whole of the west really] you begin to understand how the ripple effect of something that starts in a small town can reverberate round the world.
(Hat Tip: Culture 11 )