IMHO- it's BOTH.<br><br>In the past stupid people were stopped from making Stupid mistakes because of rigorous credit practices...<br><br>The lenders got greedy (developers too) and loosened the requirements (to make many quick loans) and many people figured they could overextend themselves (buying say a $250K house instead of a $125K or borrowing on an existing mortgage to pay off debts) assuming in 5 years their income would go up 30-50% and they could make the payments when the cheap introductory payments expired... and it didn't happen.<br>Wages are relatively stagnant due to jobs going overseas, corporate mergers, consolidation of money in the top 2% of wage earners... <br><br>They're ALL (lenders and borrowers) hitting the brick wall going 90 mph.<br>I expect more "fallout"... maybe even a recession.<br><br>David (OFI)
David (OFI)