Subprime Mortgage Crisis
The worldwide flight of investors from U.S. non-traditional mortgage loans still has financial markets in turmoil. Investors are battling each other and brokers who compare mortgages to sort out who will end up taking the losses from mortgage defaults and, more importantly, the losses from marking down the asset value of loans now judged more risky than when they were made.
The outlook is that the turmoil in trading rooms especially on fixed rate mortgages will continue for a few more days, perhaps a few more weeks. However, as with the S&L collapse a generation ago, the aftermath will be long and ugly and act as a depressant on investing in mortgages for many years and for other buy to let mortgages
The risks to construction from the subprime mortgage market collapse are growing, but still appear to be containable. However, it is not yet certain that it will be contained with minimal damage to contractors and their suppliers.
If you liked this article, click here to buy me a beer!Dear visitor, if you enjoyed reading this post, you may want to subscribe to my RSS feed. Thanks for visiting!
Comments