Is the Credit Crunch designed to remove the Equity that the middle class have accumilated over their lifetime?

Question

Robbin Barstewards

Answer 1

Whether it was designed as such or not, it's doing a fair job of it.

Thanks, Bush - thanks a lot.

Answer 2

I'm not sure that you understand the concept of the credit crunch. The people that will suffer the most will be those that have no equity. The middle class with equity won't be touched.

If you meant negative equity as in house prices, then again you have misunderstood. the credit crunch was basically accelerated by the drop in the housing market, it did not CAUSE the drop in the housing market - quite the opposite way round...

Equally it was not DESIGNED it was the result of over-selling by mortgage brokers in the US to house buyers that would inevitably get into financial difficulties - by the time they had reached the problem point, the brokers had already sold the debt on to the big banks (some of them UK banks).

If it was designed to do anything it was to make the sub-prime lenders a few bucks in the short-term. Those sharks couldn't give a d**n who loses as long as they gain...

Answer 3

To steal it, yes.