Don’t you find it hard to believe that all these financial “experts” never saw this coming?

More signs of weakness in the mortgage market, another surge in oil prices and a Federal Reserve rate decision could create more turbulence for Wall Street this week.

Widening fallout from the U.S. housing slump has rattled credit markets, putting investors on edge about the outlook for corporate takeovers and share buybacks — two catalysts of the market’s recent rally to record highs.

On Friday, Standard & Poor’s cut its ratings outlook on the debt of investment bank Bear Stearns Cos.(BSC.N), fanning concern that troubles in the subprime mortgage market are spreading, which could threaten the economy’s health.

Two years ago, my wife and I were talking about this very topic. We were discussing the way lenders were bending the rules so more people could buy houses that cost a lot more than traditional financing would allow.

I think we’re just seeing the tip of this disastrous iceberg.

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