Prime going delinquent
This topic seems to be in the news today, here is Big Picture on it.
I have written on the destructive nature of low interest rates in my post "Low Interest Rates: As Destructive as Usury? You can borrow a heck of a lot more money yet your ability to pay back the debt early is completely slaughtered. Many did well in the past by reducing the amount of interest they actually had to pay on debt by repaying debt early. With low interest rates that advantage is lost and the implications to all future financial planning is beyond enormous, it is debt slavery. The lowering of interest rates is only good for people who already have debt and are able to reduce interest payments and free up money for other things. It is a disaster for people taking on debt.
I have written further and in more depth on the topic in Six Degrees of Leverage.
I also did a write-up on what lending standards should look like if you want a strong foundation in the economy, Sensible Lending Standards. I did this one using docstoc because of how difficult it is to format blogs with the existing tools, but that has reduced readability, so I might go back and actually put the hours into formating it for a blog at some point.
Looking back some of what I have in the latter post I have also outlined with my personal example of how it would affect my ability to borrow in Subprime, Spending and Lending Laws.