Despite Ben Bernanke’s optimism that the sub-prime issues wouldn’t spread to the rest the of the economy, not only is it spreading to the rest the of the economy, its become our favorite export to global economies too!The resulting liquidity crunch has already begun. Many banks just announced that they’ll no longer accept loans through brokers. This is to reduce the additional cost of having a middle-man. Washington Mutual also announced that its Jumbo loans would be priced at 8%. OUCH! Basically, WAMU is having a tough time reselling these loans on the secondary marke[...]
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[Source: The Money Blogs]
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