Subprime fiasco: "We've only begun to see the pain"

Let's all thank the GOP for their bang up job with allowing Wall Street to self regulate. How did anyone think this would not become an ugly problem?

"We've only begun to see the pain from the standpoint of the homeowner in terms of those monthly payments," said Bill Gross, chief investment officer of Pacific Investment Management or Pimco. "Defaults and delinquencies will increase as we extend throughout 2007 and into 2008."

Gross blamed "garbage loans" issued by large banks who couldn't guarantee them and consumers who couldn't afford them. Large lenders like Citigroup
Citigroup Inc, Merrill Lynch & Co Inc and Bear Stearns will be paying the price, he said.

At least voters will have an opportunity to have this fresh in the minds during the campaign season next year and can decide just how much they enjoy self-regulation and all of its benefits.