Thanks David for a good explanation. I'm in Canada and we haven't been affected in the same way due partly to the fact that our financial institutions have lent money a lot more conservatively.

One thing that I've wondered watching the situation in the U.S. is why everyone wants to bail out the banks. Haven't they brought this on themselves through foolish lending? While I do believe that everyone is responsible for the decisions they make, I'm sure those banks were out there "selling" those loans to sub-prime lenders and trying to get the maximum mortgage sold for each client - luring them with these mortgages that the banks should have known the lenders couldn't afford.

Aren't the banks just getting what they deserve for being greedy?