U.S. Mortgage Crisis Goes Into Meltdown

February 27th, 2007

I explained the racket in my Wall Street Chop Shop essay.

Via: Telegraph:

Panic has begun to sweep the sub-prime mortgage sector in the United States after the bankruptcy of 22 lenders over the past two months, setting off mass liquidation of housing loans packaged as securities.

The rapid deterioration could not come at a worse time for British bank HSBC, which has set aside $10.5bn (£5.4bn) to cover bad loans in the US.

The cost of insuring against default on these loans has rocketed in recent weeks, from 50 basis points over Libor to 1,200, raising fears that a credit crunch could spread to the rest of the property market.

Posted in Collapse, Economy | Top Of Page

One Response to “U.S. Mortgage Crisis Goes Into Meltdown”

  1. George Kenney says:
    March 1, 2007 at 7:42 am

    Fight or Flight? If you choose Fight, Vote Ron Paul; there is not much time left for the USD currency as he describes in his talk in New Hampshire.

    http://video.google.com/videoplay?docid=-1379973308209505229&pr=goog-sl

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