Thursday, 14 February 2008

U.S. Mortgage Crisis Spreads Beyond Subprime Loans

The U.S. credit crisis is no longer just a subprime mortgage problem.

As the world's largest economy grapples with the worst housing slump in two decades, people with good credit histories are falling behind on house payments, auto loans and credit cards at an accelerating pace.

The problem, spurred by a sharp decline in home prices and a clampdown on loans by banks, poses a new a threat to the housing market and weakening economy, which some specialists say is in a recession or headed for one.

The US economic fundamentals are a disaster. Be prepared for further bank losses and failures in the up coming months.

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