I've followed the housing bubble for quite a while. Since 2003, I've thought that home prices were unsustainable, and that lenders were just plain batty for extending "no doc" loans with teaser rates to anyone with a pulse. The rapidly progressing collapse of New Century Financial (only the second largest subprime lender in the country) seems to be the canary in the coal mine, and I was fascinated to read an inside account of the mortgage industry which explains how New Century's struggles will likely start of a wave of defaults in small lenders. It makes for very interesting reading, and a rare insider's account of the mortgage industry.
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March 09, 2007
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Yay! He blogs again. All is right with the world.
Posted by: Maggie | March 10, 2007 at 05:23 PM
Yep, we'll see how long it lasts. :)
Posted by: Paul | March 11, 2007 at 07:29 PM
paul - dow -200 now because of concern over subprime mortages. also, continue pressure in mortage market expected.
Posted by: dad | March 13, 2007 at 11:20 AM