Wednesday, March 14, 2007
US mortgage mayhem prompts sell-off
"This is not the end of the wave, this is the beginning," she said, accusing brokers of issuing loans without even asking for proof of income. Nouriel Roubini, of New York University, estimates that half of the entire mortgage issuance since early 2005 is "garbage", warning of a seizure in housing. "We have the beginning of a much broader credit crunch that could have severe macro-economic effects,"