Posted by Kevin/Ct on 8/28/07 5:21am
Msg #208074

Subprime disaster continues

As of this morning the count of defunct subprime lenders stands at 89. There have been massive lay offs of lenders' employees, and economists indicate that they have no idea how this will play out in the coming months. Their worst fear is that tightened credit could throw the economy into recession. The impact is being felt throughout the real estate industry housing resales have dropped for the fifth straight month, and prices of homes have dropped for the twelfth straight month. Congress is pressuring the Federal Reserve to act to ease the credit crisis. Some have speculated that it may take years for the real estate industry to recover.