Sorry, I've got to call bullshit on your interpretation that the mortgages are not the real problem.
You explained the credit crisis very well, but you've dismissed the REAL root cause of the tight credit markets. What's causing the worries is that investors just don't know how many of the mortgages they own will actually be able to pay up. If they could trust that people will actually be able to repay their mortgages, then the money would be a sure thing again. With the investment secure again it becomes worth something on the open market, and they can start to record a value on the books.
If my car runs out of fuel I wouldn't blame it on my engine for not being able to turn over anymore.
Slashdot Mirror
Sorry, I've got to call bullshit on your interpretation that the mortgages are not the real problem.
You explained the credit crisis very well, but you've dismissed the REAL root cause of the tight credit markets. What's causing the worries is that investors just don't know how many of the mortgages they own will actually be able to pay up. If they could trust that people will actually be able to repay their mortgages, then the money would be a sure thing again. With the investment secure again it becomes worth something on the open market, and they can start to record a value on the books.
If my car runs out of fuel I wouldn't blame it on my engine for not being able to turn over anymore.