Subprime… The Most Overused Word in The English Language
The fact that we have a serious mortgage delinquency problem in most parts of California is now irrefutable. The Central Valley has had more than its share of casualties over the past several months and the pace at which homeowners are losing homes to foreclosure is showing no signs of abating.
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Observations from the Edge
Another tough day on Wall Street, driven in large part by fears that much of the worst news from the big banks and brokerage houses is not out yet. Stan O'Niel (Merrill Lynch) and Chuck Prince (CitiGroup) find themselves out of work - but certainly not out of money wih the embarrassing severance compensation they received - in large part because they guided their respective firms down the path of CDO/SIV disaster. Losses of historic proportion and writedowns in the billions have shareholders frustrated. And, for those that invested in these securities, it is not going well at all.
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