Would you have voted for John Key if you had known: The Subprime crisis and John Key.

This was originally posted on December 16th, 2008 but in light of the financial collapse now actually happening in Europe and the US and with New Zealand at  risk of voting a banking criminal in again I thought I’d publish it again ————————— Let’s start with a few quotes “The products which underpinned the sub-prime […]

Tempest for a Bank That Bet on Risky Loans

Uh ooh CORAL GABLES, Fla. — A cheerful sign outside the glistening offices of Bank United beckons consumers to tap into “Mortgage-ade.” Another promises a “59 Minute Mortgage.” But easy money, it turns out, has created enormous problems at Bank United, Florida’s biggest regional bank. By aggressively peddling a popular type of high-interest loan to […]

A second, far larger wave of U.S. mortgage defaults is building

NEW YORK: The first wave of Americans to default on their home mortgages appears to be cresting, but a second, far larger one is building with alarming speed. After two years of upward spiraling defaults, the problems with mortgages made to people with weak, or subprime, credit are showing the first, tentative signs of leveling off. But […]

Foreclosures Rose 53% in June, Bank Seizures Tripled

July 10 (Bloomberg) — U.S. foreclosure filings increased 53 percent in June from a year earlier and bank seizures rose the most on record as deteriorating property values and higher rates on adjustable mortgages forced more people to give up their homes. More than 252,000 properties, or one in 501 U.S. households, entered a stage […]

Housing affordability getting worse

Housing affordability during March was the worst it has been in at least six years as strong house prices and rising interest rates combined to squeeze mortgage holders. The latest Fairfax Media Home Loan affordability report shows the proportion of median take home pay required to service the mortgage on a median house rose to […]