Summary:
The evidence just keeps piling up.
It was announced today that one of the largest sub-prime mortgage lenders in the United States, New Century Financial, has filed for Chapter Eleven bankruptcy after being forced to buy back billions of dollars in defaulted loans. Analysts like Mike Whitney have been clamoring about the coming collapse of the U.S. real estate bubble for years. It is becoming harder and harder to ignore the ramifications of the irresponsible spending spree brought on by the artificially low interest rates that will be Alan Greenspan’s shameful legacy to future generations.
As the real estate sector – which has, both directly and indirectly, contributed a large percentage of the new jobs created in the country over the past several years – collapses, the effects will be felt across the entire global economy. The worst-case scenario is a global recession that will make the Great Depression appear mild by comparison.
http://www.gnn.tv/headlines/13755/Top_U_S_Mortgage_Lender_Files_For_Bankruptcy
By Newsire
Republished from BBC
More disparaging news from the U.S. housing market
New Century Financial, one of the largest sub-prime lenders in the US, has filed for Chapter 11 bankruptcy.
New Century sought protection from creditors after it was forced by its backers to repurchase billions of dollars worth of bad loans.
The company said it would immediately cut 3,200 jobs, more than half of its workforce, as a result of the move.
Sub-prime lenders, who target customers with poor credit histories, have suffered from a downturn in the market.
Shares in New Century were suspended in March on fears the company may be heading for bankruptcy, following a sharp rise in people defaulting on their loans.
New Century’s creditors include investment bank Goldman Sachs and Britain’s Barclays bank.
The company said it planned to sell its loan servicing operations to Carrington Capital Management for $139m (£70m), subject to bankruptcy approval.
[end excerpt]
Click here to read the rest of the article
The evidence just keeps piling up.
It was announced today that one of the largest sub-prime mortgage lenders in the United States, New Century Financial, has filed for Chapter Eleven bankruptcy after being forced to buy back billions of dollars in defaulted loans. Analysts like Mike Whitney have been clamoring about the coming collapse of the U.S. real estate bubble for years. It is becoming harder and harder to ignore the ramifications of the irresponsible spending spree brought on by the artificially low interest rates that will be Alan Greenspan’s shameful legacy to future generations.
As the real estate sector – which has, both directly and indirectly, contributed a large percentage of the new jobs created in the country over the past several years – collapses, the effects will be felt across the entire global economy. The worst-case scenario is a global recession that will make the Great Depression appear mild by comparison.
http://www.gnn.tv/headlines/13755/Top_U_S_Mortgage_Lender_Files_For_Bankruptcy
By Newsire
Republished from BBC
More disparaging news from the U.S. housing market
New Century Financial, one of the largest sub-prime lenders in the US, has filed for Chapter 11 bankruptcy.
New Century sought protection from creditors after it was forced by its backers to repurchase billions of dollars worth of bad loans.
The company said it would immediately cut 3,200 jobs, more than half of its workforce, as a result of the move.
Sub-prime lenders, who target customers with poor credit histories, have suffered from a downturn in the market.
Shares in New Century were suspended in March on fears the company may be heading for bankruptcy, following a sharp rise in people defaulting on their loans.
New Century’s creditors include investment bank Goldman Sachs and Britain’s Barclays bank.
The company said it planned to sell its loan servicing operations to Carrington Capital Management for $139m (£70m), subject to bankruptcy approval.
[end excerpt]
Click here to read the rest of the article
