The news gets worst. The fever that Uncle Sam has contracted about 13 months ago has now turned into pneumonia, and now the world has got tuberculosis. The subprime mortgage crises has now evolved into a full scale financial crises with major financial institutions falling, the Leighman brothers, Meryll Lynch and AIG being its latest victims. (Fortunately the Feds intervened in AIG’s case and Merill Lynch had the benefit of having a dashing knight to its rescue. The Feds decided to save insurance giant AIG because it is "too big to fail." Of course it is, imagine what would happen to their carinsurancelist.com) Experts are now saying that the United States has full entered into a recession while Wall Street is asking who is next. Amidst the turmoil one cannot anymore avoid trying to understand the complexities of the subprime mortgage crises which undoubtedly is the main source of all of these. As I wrote before in my post entitled “Idiot’s guide to the subprime mortgage crises”, … [Read more...]
Idiot’s guide to the subprime mortgage crises
They say that when Uncle Sam sneezes, the rest of the world gets a cold. Now, Uncle Sam certainly isn’t sneezing, Uncle Sam’s got a flu and the rest of the world got pneumonia. The economic woes of the United States are far from over brought about by rising fuel costs and mainly the subprime mortgage crises. Most people in other countries do not understand what this subprime mortgage crisis is all about. The reason for such is that mortgage is not a very popular thing in other countries, and if it is, they probably still do not have the sophisticated mortgage system that the United States is implementing. If they don’t understand what mortgage even is, how in the world could they understand what subprime mortgage is much more the subprime mortgage crises. For instance, in our country the Philippines, although we have “mortgages,” we still do not have a very complex mortgage industry like the United States has. Mortgage may be well advertised here in the Philippines, but not as … [Read more...]