Monday, February 9, 2009

The next domino to fall

Alt-A loans: New fear for middle-class subprime

The doom-mongers reckon America's property market is on the verge of a new crisis as big as the subprime disaster that began in 2007. The fear is that borrowers with better credit histories, who took out Alt-A mortgages, are defaulting on a similar scale. Rising unemployment in America, where a record 598,000 jobs were lost in January alone, means many borrowers are struggling. Late payments and repossessions are soaring. Dozens of banks are affected because they bought parcels of Alt-A mortgages that were sold as securities and traded around the world. The picture is bleak.

Posted by little professor @ 01:43 PM (895 views)
Please complete the required fields.

3 thoughts on “The next domino to fall

  • little professor says:

    Moody’s reckons total losses from the 2006 Alt-A vintage could peak at 20%, and the 2007 vintage may average 24%. Some have ‘performed similarly to subprime’. Historically, Alt-A losses had been just 1%.

    Please complete the required fields.

  • In a recession (and especially in a depression) the number of defaults increases and the recovery decreases… this is where people start to realise that the sh!t they just saw hitting the fan was only the first of a wheelbarrow full of the stuff.

    Please complete the required fields.

  • Ctrl-Alt-Del mortgages next to be reset 🙂

    I’ll get my coat

    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
  • 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Your email address will not be published.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>