The problem with this issue -- maybe the biggest problem -- is the willingness of all players to overdramatize. If cool heads prevailed, it could be managed.
But cool heads seem to be a thing of the past in a reality-tv world.
pity.
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Well not all of the players are overdramatizing the issue:
"We have had a significant housing correction in the U.S...It's too early to tell whether it's bottomed. I believe it has."
"There's some fallout in the subprime mortgage market. It's painful to some mortgage holders, it's going to be painful to some lenders, but it's largely contained."
-- Treasury Secretary Henry Paulson, March 13, 2007
"Although the turmoil in the subprime mortgage market has created severe financial problems for many individuals and families, the implications of these developments for the housing market as a whole are less clear...At this juncture, however, the impact on the broader economy and financial markets of the problems in the subprime market seems likely to be contained. In particular, mortgages to prime borrowers and fixed-rate mortgages to all classes of borrowers continue to perform well, with low rates of delinquency."