Newsflash: The Next Tsunami Of Aggressively Irresponsible Loans Didn't Magically Disappear

Newsflash: The Next Tsunami Of Aggressively Irresponsible Loans Didn't Magically Disappear

We’ve been talking about the next wave of the mortgage crisis for quite some time now, and it seems that, as predicted, it’s cresting and about to hit. We are, of course, speaking of Option-ARM loans — considered the riskiest of all mortgages due to their ability to grow rather than shrink. Yes, there actually exists a mortgage that allows the borrower to pay less than the interest that is accruing on the loan.

Ladies & Gentlemen, Your 81st Bank Failure Of The Year

Ladies & Gentlemen, Your 81st Bank Failure Of The Year

Normally we wouldn’t rely on the phrase “third largest bank failure of the year” to impress upon you the seriousness of a situation, but since we’re at our 81st bank failure of 2009, we’re going to go with it. Meet Guaranty Bank of Texas. It has now failed.

Now That The Largest Bank Failure In U.S. History Is Over, Is Wachovia Next?

Now That The Largest Bank Failure In U.S. History Is Over, Is Wachovia Next?

The collapse of Washington Mutual and the FDIC-engineered fire sale to JPMorgan Chase has people worried — about Wachovia. Wachovia’s stock is down 45% for the week, and 27% today as bailout talks stalled in Washington and WaMu held a garage sale at the FDIC.

The Subprime Meltdown Will Be Nothing Compared To The Prime Meltdown

The Subprime Meltdown Will Be Nothing Compared To The Prime Meltdown

James Dimon, the chairman and chief executive of JPMorgan Chase, is not optimistic about the mortgage market. He told investors that he expects the losses mortgages given to people with good or excellent credit to be “terrible.” According to the New York Times, “The first wave of Americans to default on their home mortgages appears to be cresting, but a second, far larger one is quickly building.” How can this be?

Class Actions Loom For Subprime Lenders

Soon, the piper may have to pay the piper: class actions against sub-prime lenders could be just around the corner.