It is funny how people don’t really want to know things. I have been laughing that the media, and thus the majority of the general public, has been calling the real estate financing problem “Sub-Prime.”  The reality is, sub-prime mortgages were simply the catalyst or the first cards to drop in the house of cards. The financial system is so heavily built on leverage that it doesn’t take much of a ripple in the cash flow to cause a problem for the whole system.  Moody’s just announced today that they will be reviewing all prime-jumbo mortgage securities from 2006 and 2007 because late payments are, “building more quickly in the past few months.” No shit.

[tags]sub-prime, mortgage, moodys[/tags]