With no loans to be had --- only those with cash will be able to buy.
And those with cash are few. Very few.
The entire nation was speculating in real-estate like they were in stocks in the 20s. The unwinding will be ugyly.
cnn from this article http://money.cnn.com...sion=2007082021It is difficult to imagine who could step in and fill the gap should consumer banks like Capital One or Wells Fargo exit mortgage lending operations altogether, particularly given how badly the business has suffered. Nearly 120 mortgage lenders in the past nine months have closed their doors, declared bankruptcy or been sold off to the highest bidder, including stock darlings like New Century Financial and private equity-owned businesses like Aegis. That's about three lenders a week. Not only have companies closed, thousands of layoffs now dot the country where booming economies once stood.
Edited by zedor, 21 August 2007 - 04:57 AM.