Mortgage loss threatens US banks

BBC News | Jun. 22, 2007 (News Report)

The US housing downturn may have major financial repercussions, experts have warned, as Wall Street faces up to the crisis in the sub-prime lending market.
Bear Stearns, a leading US finance firm, is trying to prevent the collapse of two hedge funds with major exposure to the high-risk mortgage sector.

Should it sell off investments cheaply, it is feared similar funds will follow suit, causing a crisis in confidence.

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by Naomi Isler - Oct. 1, 2008

When will they ever learn???Oh when will they ever learn???We go through this kind of crisis periodically when 'capitalists' think they have found a glorious new 'creative' way to manufacture high income, and it almost always ends in a crash. Because no one regulates them before it's too late. The mortgage problem is not only taking away the dreams of borrowers, but has the potential to wreck the whole economy - but this has happened many times before and will happen many times again. "So it goes".