The effects of a steadily weakening economy is now pulling prime, or good credit, mortgages into a potential second wave of home mortgage defaults. The combination of slower than expected economic growth, continued drops in home prices, growing unemployment rate that lifted to a four year high in July. NY Times-Housing Lenders Fear Bigger Wave of Loan Defaults The first wave of Americans to default on their home mortgages appears to be cresting, but a second, far larger one is quickly … [Read more...]
August 1, 2008
August 4, 2008 By Leave a Comment
Wall Street Journal-Ahead of the Tape Economists expect to see the jobless rate tick higher to 5.6% and payrolls shrink by 65,000 jobs, the seventh consecutive month of losses. What isn't so clear is how much pain will reach beyond the sectors most brutalized during this downturn: manufacturing, construction and retail. That threesome has shed 658,200 jobs so far this year. All other private sectors combined have added 94,200 jobs. It is an echo of the bifurcation in corporate profits, where … [Read more...]
