So during my breakfast reading today, this understated sentence in the NY Times caused me to proclaim "amen" rather loudly between sips of my protein shake: "In the last two years many skeptics began warning that the red-hot housing market and adjustable-rate loans would blend into a toxic brew." As the forlorn Eyeore would say, "Thanks for noticing me!"
Am I sad about the mortgage lender in the article whose days of driving a red Ferrari convertible are over, because the adjustable-rate loans he made to borrowers without the track record or means to repay are being rejected by investors and investigated by the feds? No, my concern lies elsewhere. I have now been around the block enough times to recall the "savings and loan" disaster of the early 1990's, and the windfalls that preceded the downfalls, where those at the bottom of the financial food chain were devastated, while those at the top (Google Neil Bush) made out quite well.
Check your portfolio of investments: even if you think the disastrous housing market doesn't affect you since you're not buying or selling or re-financing right now, your retirement savings may be dependent on how close that 800 pound gorilla comes to trampling on your nest egg.