morbius glass

Reviews – Comics, DVD’s, Books. Finance – FX markets, Stocks, Economics. Culture

World Crisis scenarios for the 21st century – Worldwide economic depression. (update 3)

Posted by Adrian on August 1, 2007

Major US mortgage broker American Home Mortgage Investment Group can longer give out loans and may liquidate it’s assets. This comes as creditors/banks will start tightening and closing off credit to non bank lenders. An overall tightening and limited credit market is on it’s way spurred by the collapsing mortgage market in America

“Many U.S. mortgage providers have struggled with a housing slump that has caused home prices to stall, borrowing costs to rise and defaults to soar. Dozens have tightened lending policies, quit the industry, or gone bankrupt. American Home relies on bank financing to help fund home loans.”

American Home Mortgage Investment Corp collapse – CNNMoney

Wall Street continues it’s decline, stocks down again with Oil continuing to rise. It appears the markets are now unbalanced with rising fuel costs and declining assets markets – that puts the markets in an even more dangerous position than the recent stock market ‘correction’

“The concern is when will the next shoe drop,” said Art Hogan, chief market analyst, Jefferies & Co. “The implication is not this one particular company, but what else is out there.”


Wall Street get’s derailed – CNNMoney

Mortgage and a credit crunch looms in the UK, as low interest rates and huge consumer debt may prompt the Central bank of England to increase interest rates.

“Joanne Raynor, a financial adviser at Solutions Ltd., a company that negotiates loans in Leeds, England, said the bulk of her 100 customers will pay an extra 250 pounds on average a month when they refinance.`I have one particular client who is in dire straits,” Raynor said. ‘It’s gone from not being able to go out to a wine bar as often as she would like to the point where she can’t actually pay for her groceries.’ The number of Britons entering bankruptcy rose to a record in the first quarter. In 2006, the number of mortgage- repossession claims was the highest since 1992, just after the U.K.’s last recession.”

UK mortgage crunch looms – Bloomberg

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

 
%d bloggers like this: