Credit Problems...Ignored No Longer

The credit squeeze is finally and officially here and not a surprise to anyone. It was inevitable, while buyers and lenders continued to make deals and ignore the consequeces. The problem has finally been revealed, and it's not going away.

Central banks have poured in cash, but the underlying problem will continue to grow.

Inerest rates for traditional Fannie/Freddie/FHA/VA mortgages are plus or minus 6.75%.

For the high-rollers of luxury properties, jumbos are around 7.25%; Alt-A for big-down high-FICO, 9 percent. NINE. In three weeks' time the clock has turned back to 1995.

A very serious situation indeed.