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Mortgage Crisis Not Limited To Subprime

According to this short video from the Wall Street Journal, the mortgage crisis is no longer limited to sub-prime loans. Its spreading to other loans and even construction loans.

I wonder if the analyst believes that Fannie Mae and Freddie Mac are going to fail?

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3 Responses to “Mortgage Crisis Not Limited To Subprime”

  1. You gotta know that if people can’t get loans, they can’t buy homes. Therefore the contractors/developers have houses just sitting. They are trying to flush them out by selling at cost, but that does not mean there are enough people there to buy them. Seems that banks are to tight now, they are going to be stepping on their own feet for a while. It is not over by any means. Some people are going to get hit and they do not even know it yet.

  2. I wonder if more banks are going to go the way of the realty companies because of this.

  3. I knew it was going to happen, the question was whether it would happen sooner or later. It is not so much a matter of whether good credit scores have a good history of making payments, but whether they have a good financial management system in place. It will be interesting to see how this “new” trend affect the economy as whole.

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