Subprime Shatters the Market
Ugh! Double ugh ugh!
The fallout of the crash of subprime mortgage finance continues as Countrywide reports a 33% drop in second-quarter income, read the story at CBS Markwatch:http://www.marketwatch.com/news/story/countrywide-quarterly-profit-drops-losses/story.aspx?guid=%7B88821AE2%2D27FE%2D4E74%2DA96A%2D0FE326B14B29%7D).
This does not suprise me as I've been first-hand witness to Countrywide making deals work by overlooking normal underwriting guidelines. Short-term "get the deal done" thinking brought on loans that never had the proper risk assessment and appropriate finance rate on them.
I do not think we are anywhere near the bottom of the fallout of this subprime storm. Do you want to catch a falling knife? I didn't think so. Nor do so many others and that is why we see an absence of home buyers and falling home prices.
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