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Post by jeffolie on Jul 7, 2007 12:57:32 GMT -6
The money to buy subprime mortgages is all but gone. The buyers of these toxic waste bonds are now having to put up 50 to 100 percent of the purchase price. The banks have raised the margin to loan money to the CDO managers.
The liquidity is gone for these MBSs.
The mortgage brokers will be unable to sell these mortgages at current rates.
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Post by jeffolie on Jul 7, 2007 13:08:15 GMT -6
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Post by beachbumbob on Jul 9, 2007 6:14:55 GMT -6
The money to buy subprime mortgages is all but gone. The buyers of these toxic waste bonds are now having to put up 50 to 100 percent of the purchase price. The banks have raised the margin to loan money to the CDO managers. The liquidity is gone for these MBSs. The mortgage brokers will be unable to sell these mortgages at current rates. the domino effect is now happening as not only capital is drying up for mortgage related stuff but other corporate instruments as well...as financial institutions try to cover billions in exposures in the housing collapse. cost of money will go up
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