Thursday, December 27, 2007

And the Dow went up? Hello? Wake up fools!

Americans 'walk' from loans

Nearly 180,000 US local councils were placed on credit watch, with the credit agency Fitch releasing another $US5.3 billion in credit downgrades involving 27 mortgage companies. The news emerged on Friday night, when the nation's newspapers, even if they were following the story, would miss it. That one company could downgrade 27 major financial institutions in one stroke is stunning, but it follows a swathe of credit downgrades that swept the US on Thursday and Friday. There has been a major falling out between mortgage insurers, credit rating companies, banks and mortgage institutions, which believed their loans were insured, only to be stunned to find themselves booted into the mire that is American banking.

Posted by lvmreader @ 08:41 PM (648 views)
Please complete the required fields.



2 thoughts on “And the Dow went up? Hello? Wake up fools!

  • “J Kyle Bass, the highly respected authority on the housing industry, recently released details of a study his company has concluded on the vast “Inland Empire” region of California where millions of new homes have been built in the past decade, and said he found the situation far worse than he expected, with over 90% of housing loans containing some sort of fraud.

    He said “50% of applicants overstated their incomes by more than 50%” in what is the starkest condemnation of the “liar’s loans” this correspondent has seen”.

    OK…so how come everyone went along with it….and the whole toxic mess was sold on? Isn’t this why greed is a “deadly sin”?

    Reply
    Please complete the required fields.



  • “Jingle Mail”, coming to the UK in 2008….

    “The depth of the housing crisis was underscored by the head of one of America’s largest banks, Bank of America, the straight-speaking Kenneth Lewis, who warned of a completely new attitude by Americans to their homes amid fears that as many as 20 million householders may “walk” from them, further deepening the crisis.

    Lewis’ comments came as a new expression – “jingle mail” – referring to the growing trend where Americans mail the keys to their homes to the lenders before vacating, entered the US lexicon. Figures for November revealed more than 200,000 US homes were foreclosed, a 68% increase on November 2006.”

    Reply
    Please complete the required fields.



Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>