Money For Nothing

NINJA loans. Great. Washington Post (03.14.07), via Roubini:

"No, folks, I'm not making this up. Not only has the industry embraced these 'innovations,' but it has also begun to combine various features into a single loan and offer it to high-risk borrowers.

One cheeky lender went so far as to advertise what it dubbed its 'NINJA' loan -- NINJA standing for 'No Income, No Job and No Assets.'"

'No Money Down' Falls Flat

"In fact, these innovative products are now so commonplace, they have been the driving force in the boom in the housing industry at least since 2005. They are a big reason why homeownership has increased from 65 percent of households to a record 69 percent."

"They help explain why outstanding mortgage debt has increased by $9.5 trillion in the past four years. And they are, unquestionably, a big factor behind the incredible run-up in home prices."

Pretty funny, huh.