Friday, July 27, 2007

Traders no longer believe “subprime” problems can be contained

Subprime coming home to roost

The US housing market is looking increasing weak with the number of unsold properties reaching its highest level since the end of the nations last housing recession in 1992. Losses in high-risk lending known as subprime could reach $100bn according to estimates by the Federal Reserve. After a subprime market wobble earlier this year traders has satisfied themselves that the "subprime" problem was contained and a sense that risk could be contained by spreading the risk ensued, boosting markets. However, as with cyclic behaviour, optimism has faded and fears of a credit crunch due to subprime problems is forcing investors to sell healthy investments to cover their losses.

Posted by denzil @ 12:39 PM (543 views)
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2 thoughts on “Traders no longer believe “subprime” problems can be contained

  • Cheakie Charlie says:

    Come to Daddy!

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  • This is it folks.

    The last full week of July is a watershed, stock markets are plunging (US, UK, EURO, Japan etc), debt in the western world is finally under the microscope (sub-prime, prime, hedge fund, private equity) oh dear the slick city bankers will not be getting their bonus this year, London house prices where next ?, US house prices are toast, no prizes for guessing who’s next?

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