Contrarian Chronicles 3/19/2007 12:00 AM ET
Warning: This mess will only get worse
The inevitable demise of the subprime mortgage market leaves the entire housing market -- and with it the economy -- on the verge of collapse.
March 20, 2007 -- 13:30 ET
Bubbles have a way of masking what would otherwise be self-evident truths. And, as the credit bubble in real estate dies a dramatic, not-pretty death, a very simple truth has resurfaced: It's not a viable business when you lend money to people you know can't pay it back. If the late, "great" subprime sector had a tombstone, that would be a fitting epitaph for New Century Financial and others.