There has been a lot of talk about subprime lending over the last few years, but never as much as in the last month or so, since the banks started failing and cause the stock market to fall into limbo.

Unfortunately, as many of us have found, subprime lending and the greed of big financial institutions has screwed us “normal folk.”  With the stock market exhibiting wild swings and frightening freefalls, for many of us our retirement accounts are all but worthless.  All we can do is wait and hope the market recovers again.

But the biggest area where the subprime lending has screwed us is in our ability to get loans.  The banks are supposedly tightening up now, and those of us who can afford a home are still finding it more difficult to get a loan.

Even more serious is when you consider what this is going to do to our economy.  Spurred by low prices, home sales are finally starting to go up, and inventory to go down.  But if it continues to get harder for people to qualify for home loans, that could change — and markets such as Brooklyn real estate, Houston real estate, and Jacksonville real estate could all suffer another slump.

Subprime lending may have gotten us into this mess, but a wild swing in the other direction — where hardly anyone can get loans — is definitely NOT going to be of any help!

Will stricter lending throw us back into another housing slump?

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