Thursday, April 3, 2008

Quick Hit: Housing Crisis

The Sub-Prime Crisis has become the Credit Crisis. The Credit Crisis threatens to grind the entire economy to a halt. I am no economist, but here's what I do know. The first step to fixing this crisis is to establish a floor of losses, that is the only way financial institutions will begin to trust each other again, and we can begin to turn the page.

While I support the Dodd/Frank bill that will immediately begin to assist strapped home owners of Subprime and other predatory loans. The real focus needs to be on getting more transparency from financial institutions that had significant sub-prime risk. Unless and until that happens, the financial system won't begin to trust itself again.

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