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.
Regulators are ...
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The sub-prime mortgage collapse is about an increase in an already fairly small percentage of defaults. These mortgages allowed many low income families to own they're own homes and most of them are paying off their mortgage. While there may have been some unscrupulous agents, the companies themselves took a risk with the people and they are both being hurt for in in some cases. Any overflow into the financial community is as much due to over reaction. As for the tone of this piece, always remember your reading the BBC on the USA.
