Hopefully this will get the attention it actually deserves now that the hedge funds and stock market have been affected.

It's interesting.  I wonder what took HRC and Dodd so long.  Is it because CT and NY aren't as affected as other regions?  These are exactly the type of issues Edwards is talking about.  I know plenty of blogs have been on this issue for months.  Anyone with the slightest knowledge of economics could see the housing crash coming.  Especially hearing about all the exotic loans, with no money down and teaser rates.  What exactly is HRC gonna do?  After all, as  Fortune says, Wall Street loves HRC.  She can't let them down now, can she?

Good.  I'm glad everyone is talking about this.  We're facing a foreclosure crisis mostly in high risk areas to begin with, but even among some middle class homeowners because of disruptions in employment, which have become increasingly common.

The Chinese used to be the biggest purchaser of the loan contracts from Fannie and Freddie. However, starting about five years ago - after the Bush tax cuts went through, exploding the deficit - the Chinese started to sell because of the falling dollar. Now, they are speeding up dumping those loans and NOT buying any more new ones.

Our government's deficit and heavy borrowing (again, this problem could be made a lot better by getting rid of Bush's tax cuts, though not completely solved) has led to a cheaper dollar which is killing the profits for the Chinese investments and even making them lose money on their dollar-denominated holdings, including those mortgage contracts from Freddie and Fannie. Thus, we are in a Catch-22: we have to raise interest rates to combat the falling dollar, which fucks the ARM-holders, second and third mortgage holders, and new potential buyers, OR, if we don't and we cut interest rates, we ensure that China continues its exodus OUT of dollar-denominated holdings...not only these mortgage contracts, but even T-bills. Scary.

However, the government could strengthen the dollar without the Fed having to raise interest rates (and even may be able to lower them some) by ending Bush's tax cuts. This would lower the deficit and may even create a surplus in a few years. One other way we could lower the deficit is to STOP SPENDING ALL THIS FUCKING MONEY IN IRAQ AND END THE FUCKING WAR!!!

First, I have no sympathy at all for those who tried to get rich quick by "flipping" houses with no money down interest only variable rate mortgages. They were gambling and lost. It's as simple as that.

As for the other category of sub-prime loans, namely borrowers with shaky credit records buying homes to live in, I do have sympathy. But the current crisis does not affect them any more than if it did not occur. Either they can make the payments or they can't. If they can't make the payments due to job loss or health care, how is that different from homeowners who were prime borrowers and then lost their jobs or got sick?

The goal of a home for eveyone is worthy, but has no connection with the bursting of a speculative bubble.

Because this administration has ignored domestic policy for the past 7 years we are in deep doo doo.  Everytime the dems want to talk about domestic issues.  Bush talks terror.  It reminds me of a mother-in-law who always feigns illness to keep her son from living his own life.