muzie_IHB
New member
The odds are high New Century will file for bankruptcy.
http://www.ft.com/cms/s/c6e54c9c-d0a8-11db-836a-000b5df10621.html
It is also quite likely Wall Street will severely restrict further financing for other subprime mortgage lenders (http://www.marketwatch.com/news/story/new-century-woes-could-disrupt/story.aspx?guid=%7BE98A2754-F267-4E14-81DE-58DDEFCA8207%7D).
I expect subprime borrowers will consequently get eliminated from the housing market, which will finally cause the demand slump that we've talked about here.
http://www.ft.com/cms/s/c6e54c9c-d0a8-11db-836a-000b5df10621.html
It is also quite likely Wall Street will severely restrict further financing for other subprime mortgage lenders (http://www.marketwatch.com/news/story/new-century-woes-could-disrupt/story.aspx?guid=%7BE98A2754-F267-4E14-81DE-58DDEFCA8207%7D).
I expect subprime borrowers will consequently get eliminated from the housing market, which will finally cause the demand slump that we've talked about here.