The sub-prime mortgage crisis is giving way in some places to crime ridden McMansion ghettos, perhaps the beginning of a larger long term trend in demographics: "many low-density suburbs and McMansion subdivisions, including some that are lovely and affluent today, may become what inner cities became in the 1960s and ’70s—slums characterized by poverty, crime, and decay."
posted on Feb 29, 2008 - View this thread

Two hedge funds that predicted sub-prime crisis see corporate debt as next casualty Two hedge fund firms that racked up huge gains betting on the subprime mortgage meltdown have begun winding down those trades and looking elsewhere. They're now betting against corporate debt using derivatives.
posted on Nov 15, 2007 - View this thread

On Tuesday, the Federal Reserve cut interest rates by 0.5%. Wall Street aggressively demanded the cut to stop the sub-prime mortgage contagion from triggering a credit crisis among large US and foreign investment banks and the collapse of their over-leveraged hedge funds, which ultimately threatened to drag the US economy into recession. The market rallied this week in response to the Fed's move. But there is no free lunch.
posted on Sep 20, 2007 - View this thread

For those of you who haven't been following The Mortgage Lender Implode-O-Meter and other purveyors of financial and real estate schadenfreude, the sub-prime mortgage market is in some serious trouble. The stock charts of the likes of New Century Financial and Fremont say a lot, although BusinessWeek and MarketWatch have been helpful in explaining. Is there really fraud in 70% of early payment defaults? I know traders are given to hyperbole, but Goldman Sachs and Merrill Lynch as "almost junk"?
posted on Mar 5, 2007 - View this thread