Lending to people with bad credit means you get bad debts
Possible US slowdown sparks international stock market fall.
This latest round of selling has been sparked by concerns over the US sub-prime mortgage market.
Sub-prime lenders, who target consumers with poor credit histories, have been hit by an increase in defaults and bad loans.
And no one could see that coming? Why am I not a highly-paid financial adviser that points out the bleeding obvious? Why, God, why?
In
Comments
The theory was that housing prices would always increase smartly, so the lender would always have an asset they could sell to cover the debt.
I did not subscribe to this theory :)
And they didn’t consider the part called ‘poor credit histories’?! That’s what boggles my mind!
I wonder when it will happen here?
Off topic but Jeff, the Glasgow subway was apparently opened in 1876. There was a news item on TV this evening about a proposed extension/renovation.
The housing bubble in Australia is also imploding quickly! I got lucky lst year, I sold my house 50K under market value, (but still made money and got a 20K tax bill on the sale, thanks Mr Howard!). Others I know are already equity negative on propeprties bought a four or five years ago.
Neil, it was 1896! The third oldest subway system in the world.
oops.
Get it right neil… you dumdum!
Comments form