Why Underwriters Went Wrong
Thursday, March 13th, 2008
Underwriters are the risk analyses arms of financial institutions and they are being blamed for the current crisis for allowing people with less than favorable financial standing to continue getting houses without enough money to pay for them. The mentality that the economy is rock solid and can handle just about anything is a very false belief. The economy of countries is inter-dependent and instability in one ripples thought the whole system. The problem happened when the ripple hit the housing market and they couldn’t recover due to billions of dollars in bad loans they were not able to collect. The effect, many homeless, many homes without homeowners, new homes with nobody buying and it goes on and on and on. Hopefully the market will self-heal in the near future so people can go on back to living their lives not speculating and just to go on living.