Subprime Meltdown Driven By Nouveau Riche Countries With Too Much Money And Nowhere To Put It

Subprime Meltdown Driven By Nouveau Riche Countries With Too Much Money And Nowhere To Put It

The fuel and engine for the sub-prime mortgage meltdown and the credit crunch was Allen Greenspan and the doubling of the global monetary supply, according to the This American Life episode “The Giant Pool of Money” I just got around to listening to. Basically, a bunch of poor countries got rich all of a sudden selling TVs and the like, and in 6 years, doubled the worldwide supply of money. The giant pool of money was hungry for places to invest itself.

http://consumerist.com/2008/05/12/mortgage-meltdown-isnt-just-for/

Mortgage meltdown isn’t just for people with bad credit, 2.3% of prime loans were 60 days past due in February, up from 1.4% a year ago and the highest in a decade. [USATODAY]