Subprime Meltdown
UPDATE
Take a look at todays Law.com article titled "Subprime Crash May Be a Boon to Attorneys". This only further illustrates the subprime meltdown that I have been watching unfold.
ORIGINAL ENTRY
Let me begin by stating the obvious. The subprime mortgage market has melted down like Three Mile Island. Interestingly enough, just today TXU announced it would build the first US nuclear reactor since that tragedy. What does that have to do with the subprime market? Everything and nothing. Just as Three Mile Island scared the country out of clean burning nuclear power for almost 30 years, the subprime meltdown will likely reverberate for years to come. Financiers will tighten credit and thousands of hopelessly overleveraged homeowners will find themselves foreclosed on.
New Century Financial Corp., ACC Capital Holdings, and NovaStar Mortgage, Inc. are all reeling from their reckless and avaricious ways.
Thousands of people are being laid off in Orange County and Indianopolis, corporate headquarters for the biggest subprime lenders. It will be interesting to see whether Orange County, where the average home costs north of $400,000, will continue its high flying ways. Unlikely, but you never know; the Orange County itself has already been through the bankruptcy process, so maybe that's just where the regular folks in the OC will end up.
Below are a few articles from today's Wall Street Journal. I listed the article names and WSJ's main link - you'll have to acces their archives to read the reports.
www.ReyesLaw.com
Take a look at todays Law.com article titled "Subprime Crash May Be a Boon to Attorneys". This only further illustrates the subprime meltdown that I have been watching unfold.
ORIGINAL ENTRY
Let me begin by stating the obvious. The subprime mortgage market has melted down like Three Mile Island. Interestingly enough, just today TXU announced it would build the first US nuclear reactor since that tragedy. What does that have to do with the subprime market? Everything and nothing. Just as Three Mile Island scared the country out of clean burning nuclear power for almost 30 years, the subprime meltdown will likely reverberate for years to come. Financiers will tighten credit and thousands of hopelessly overleveraged homeowners will find themselves foreclosed on.
New Century Financial Corp., ACC Capital Holdings, and NovaStar Mortgage, Inc. are all reeling from their reckless and avaricious ways.
Thousands of people are being laid off in Orange County and Indianopolis, corporate headquarters for the biggest subprime lenders. It will be interesting to see whether Orange County, where the average home costs north of $400,000, will continue its high flying ways. Unlikely, but you never know; the Orange County itself has already been through the bankruptcy process, so maybe that's just where the regular folks in the OC will end up.
Below are a few articles from today's Wall Street Journal. I listed the article names and WSJ's main link - you'll have to acces their archives to read the reports.
U.S. home builders' confidence fell in March for the first time in six months, reflecting worry about worsening credit in subprime-mortgage markets - 3/19/07
Financial Stocks Shaky - Financial stocks have been hardest hit by woes in the subprime-mortgage sector and are being closely watched for clues to what it will take for the broader market to rebound. - 3/19/07
Believing In House of Cards Haunts Investors - Investors who trusted in the magical powers of the stock market to forecast a recovery in housing have been finding out what can come of trusting in fairy tales. - 3/19/07
©2007 Angel Reyes
www.ReyesLaw.com
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