Economist David Lereah Newsweek Article

I came across this article today. 

http://www.newsweek.com/id/135724

He use to be the the head economist for the NAR.  He makes a strong statement-

“[I] just didn’t realize the scope, the extent, the magnitude of the loose underwriting—not looking at incomes and wages, just providing so many mortgage loans based on [expected] future price appreciation rather than the creditworthiness of the borrower,” Lereah says. “That got so out of hand, and none of us realized the magnitude of it until it was too late.”

I have met people more each month who are going thru this issue.  When you see it personally happen to folks, its different than reading it in the newspaper.  People got loans they should not have.  Their income levels were not able to support the loan out they got.  It worked for awhile, but the long term resets they were not prepared for.   For things to get better, the bad loans have to get worked out of the market.