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Monday, March 05, 2007

 

going cold turkey on sub-prime lending

If there is no market for sub-prime then what... That is what I heard on cnbc today that there are no takers for the loans.. also of note the federally sponsored lenders are no longer doing the same type of sub-prime and that in 60 days there may be newer tighter regulations... This all says that sub-prime is dead as a business, killer the resale market.. what does that mean for the companies that are currently in business and heading towards bankruptcy maybe... There is a criminal probe of new-century and they expect shareholder lawsuits... What that means is that the shares will go down every time one is announced and it is possible that in addition to not being able to resell the loans they may have to pay back all the money they owe rather quickly.. quick bucks for someone but it isn't them unless they can get a lender interested in a company that looks like the enron of morgage lenders in an industry that looks like the titanic. I have to desclose that I am short new century..

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