What does the credit crunch really mean? What happened to Bear Stearns? Why are interest rates being cut?

Credit crunch, Bear Stearns bailout, Rate cuts….In plain English please.*

Filed Under Bear Stearns, credit crisis, mortgage |

Last night when my wife asked me what the “credit crunch” was all about, I responded, “Well uh, you know, it’s because of the sub-prime mess….and, uh, the banks and….

It was a really bad answer, but truth be told, I didn’t really understand what it was all about. I know about the sub-prime mess since I work in real estate, but past that, it was kind of a mystery.

But thanks to Jay Thompson, who pointed out this excellent article in the New York Times, it seems quite a bit clearer to me now.

I know there are those of you out there who don’t really understand what happened to Bear Stearns, or why they had to be bailed out, or even why that has anything to with the housing crisis. This NY Times article is easy to understand for those of us out who don’t know much Wall Street lingo, and whose eyes glaze over when we’re watching the news channels about the credit crunch.

We just know it’s bad, but there’s a lot more to it. Follow the link above to learn.

*My service doesn’t stop here! In addition to maintaining The Salt Lake City Utah Real Estate Blog, I also help people buy and sell homes in Utah. When you need help with either of these, contact me!

Tags:credit crisis,Bear Stearns,interest rates,New York Times,housing market