From what I've read, most of these subprime failures have been mortgage companies targetting people with bad credit with triggers that make a much higher rate go into effect. Sort of what those f-heads in the CC industry do, but on a much larger scale. For those companies, I do hope they go bankrupt. My heart goes out for people that get their houses foreclosed on, but most of them wouldn't have qualified if people had done their homework, and not just handed over the papers and hundreds of thousands of dollars.

More ppl are going to be effected than just those who got bad mortgages. I for one am getting screwed because I design septic systems for a living. With all the cheap houses for sale no ones building so no one needs septic desings. Im sure everyone will be feeling the effects of this for a while.

Remember these people getting laid off were hired for a boom. And then they pushed through bad loans. The boom is over. I am not feeling terribly sorry for the fat getting cut. America is too obese.

Bad time to Refi?

I lol'd at "Residentail".

Uhhh...and we are to be concerned for what...??

These same people in the hedge fund, private equity and other wall streeters have forced millions of manufacturing jobs out of the US.

So I shed very little tears for their plight, devised by their very own. We are hoping many more go under and take some of the big national and world banks with them. But it looks like the Fed is getting ready to bail them out by reducing the interest rates..

That sign says it all really...the lack of education on so many levels has made this industry what it is today. And as a previous commenter mentioned, most of these people were hired for the "boom".

Unfortunately many made a lot of money and you know how money works don't you? The more you make, the more you want, and the more you spend. And it only takes about a month of earning big money to get used to the "lifestyle".

Now those very people are complaining about not being able to make their mortgage payment or pay for their Rover lease.

The people who need to pay for this are the scammers who made money off this and perpetrated it all. With some of the mentions of outright fraud in the loan process it sounds like there are some who should be under criminal investigation.

Anyone else remember when Bush was touting all the home ownership going on? The whole thing stinks like carp on a sidewalk in August.

Of course, this doesn't take into account all the mortgage brokers who quit because they weren't getting paid much anymore. My inbox at work is clogged with the resumes of adrift mortgage sales types.

@bohemian: You are blaming Bush? Hahahaha. Wow.