Subprime mortgage losses miniscule compared to what is cooking in the prime mortgage areas –financial meltdown continues with stealth
Peter Oberois
Nov. 3, 2007

It is quiet and steady meltdown. The bubble is imploding slowly and steadily. What happened to Citi Bank, Chase, Wachovia, Merrill and others is just a tip of the iceberg. The fact is that no one knows how to price these risky mortgage securities any more.

Mortgages fall out is now clearer. The staggering long-term losses range to several trillions and not a few hundred billions. As the mortgage scams with collusion prone appraisal companies unfold in the next several month, the financial meltdown will manifest the extent of losses.

Several large banks will have to be closed down. Millions will be laid off from these banks and financial services companies. This is 1907 all over again which has the potential of a ten times sever 1929-33 over a much longer period of time.

The mortgage bankers made deals with appraisal companies. The code of ethics for the appraisal industry was thrown in the water. The mortgage lenders dictated what the price of home should be. They loaned thinking the pyramid scheme of higher home prices will continue forever.

Chairman and chief executive of Citigroup stepping down confirming that the mortgage bubble and scam is beyond imagination
Sam Adelton
Things are becoming more transparent. The mortgage bubble and the scam is just beyond anything we have ever seen. Chuck Prince is planning to step down as chairman and chief executive of the banking giant.
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Subprime mortgage losses miniscule compared to what is cooking in the prime mortgage areas –financial meltdown continues with stealth
Peter Oberois
The mortgage bankers made deals with appraisal companies. The code of ethics for the appraisal industry was thrown in the water. The mortgage lenders dictated what the price of home should be.
READ MORE>>

US may lead the world in a depression – the lower steel profit from lower construction and car sales is the first signal
SamAdelton
The high value of Euro compared to US Dollar is pushing Europe into recession. All of these are coming from weaker US economy and inability of the US economy to grow faster without budget and trade deficits.
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Home price, consumer confidence and massive losses in mortgage markets – the core deflation with inflation in food and energy
Sanda Johnson
The situation has become more difficult when they fought the deflation by making credit easy in the western world. The easy home equity loans are back firing now badly.
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Yuan surges 0.3% - is this a real change in Chinese currency policy?
Babu Ghanta
But a 0.3% rise in Yuan against US Dollar in a single day would not make much difference. A consistent rise is required that will reverse some of the flow of goods and services into China.
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The first casualty from the financial meltdown – Bank of America decides massive layoff and fires its head of Global Corporate and Investment Banking unit
Sue Brown
While the whole world is busy thinking about iPhones and iPod, the financial meltdown and debt-servicing load of the economy is imploding. The implosion is severe and has the potential of a massive collapse in financial systems simi9lar to 1907.
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Median home price dropped 4.2% from a year earlier – analytics and quantitative model show 30% price retraction on the cards if economy tanks into recession
Marla Guthrie
Existing-home sales fell 8% in September amid continued problems in the mortgage market.. The median home price dropped 4.2% from a year earlier. The single-family sales hitting their lowest sales pace in nearly 10 years.
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