Wednesday, January 23, 2008

Today Would be a Bad Day to be a Day Trader with a Heart Condition

So the market went from 300 points down to 300 points up in about 5 hours. (Imagine how depressing it would be if the opposite happened). Today the Boston Globe featured a story on a woman's eviction/foreclosure that was broken up and halted by 75 community activist types (I'll try to find the right link). The woman claimed predatory lending and that she didn't understand what she signed (I think the adjustable rate increased her monthly payment to more than her monthly income)- Of course the upshot was she worked in a real estate office and dealt with these issues all of the time. Whatever the case- some hotshot mortgage lender originally thought she was a good risk. If you think the subprime mortgage crisis is bad now, just wait and see what happens if lenders can't realize on collateral.

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