|
Post by Big on Mar 10, 2007 13:48:02 GMT -5
On March 1, a Wall Street analyst at Bear Stearns wrote an upbeat report on a company that specializes in making mortgages to cash-poor homebuyers. The company, New Century Financial, had already disclosed that a growing number of borrowers were defaulting, and its stock, at around $15, had lost half its value in three weeks. What happened next seems all too familiar to investors who bought technology stocks in 2000 at the breathless urging of Wall Street analysts. Last week, New Century said it would stop making loans and needed emergency financing to survive. The stock collapsed to $3.21. www.nytimes.com/2007/03/11/business/11mortgage.html?hp
|
|
oc
Round of 12
Posts: 294
|
Post by oc on Mar 10, 2007 17:04:32 GMT -5
The mortage scam foisted on new homebuyers is a great scandal in need of extensive reporting. Deep discounted mortages with explosive upside interest rates are to benifit home builders, not individuals. A good example of what happens when sound finacial principles are abandoned.
|
|