Category Credit crisis

For more info, The Agonist has an detailed explanation of how the damage is spreading and Real Estates Charts has unsettling charts. There’s a whole lot of hurt going on now, and much more coming.

Perhaps such willful ignorance from Bear helps explain why three of their hedge funds just blew up. Apparently they don’t even read the news. “Housing slump eroding profits, from railroads to chemical companies“ An Australian bank warned its funds had…

Mortgage insurers MGIC and Radian announced Monday they are writing off most if not of a $1 billion joint venture. The Sowood hedge funds cratered yesterday losing 50%, over $1.5 billion, in just one month. A French firm is closing…

More collateral damage from the mortgage implosion. On Friday, American Home Mortgage announced they would be unable to make scheduled dividend payments due Saturday because of margin calls. Trading in the stock was halted Monday as the company remained silent…

Class warfare exists in the world of subprime mortgages and bonds, yes it does. Let me explain. Thousands of mortgages get packaged into a bond. The various risk levels of the mortgages are separated into what are called tranches. The…