Mortgage Meltdown Explained

Here it is in a nutshell, buried in a steaming pile of political speculation...

Most people don't understand this, but in the old days, if you wanted to buy a house, you'd go to a bank and if your credit was good the bank would give you a mortgage and you would pay the bank every month. Nowadays, the bank doesn't care if your credit is good because it immediately resells your mortgage to another company, which packages it with many other mortgages and gives the package to Wall Street to divide up into shares to be sold to investors.

Got it?

Sez here banks don't care any more if your credit is good. That may have been true leading up to last year, but I bet they're catching on now.