by Nicholas Beaudrot of Electoral Math
The stock market turmoil appears to be only partly related to the housing turmoil; rather, the days of "easy credit" seem to have ended, which has hurt the Countrywides of the world as well as companies who have been issuing corporate bonds with unusually low yields. But to focus on housing, this chart from Brad DeLong tells a nice story: subprime loans are not the problem; "insane" subprime loans like ARMs, no-doc, option paments, and other "non-traditional" terms are the problem.
—signed, not Ezra Klein, dagnabbit
