As mortgage meltdown moves from subprime sector to prime, Bernanke sets out jumbo mortgage plan – can it help in stopping the slow but steady financial meltdown?
Alan Hershey
Nov. 10, 2007

Mr Bernanke told Congress he would support raising the limit on the size of the individual loans eligible for government-sponsored mortgage finance from $417,000 to $1m on a temporary basis. The move comes at the right time when large financial instittuions start reporting that the mortgage meldown has eneterd the prime side of the busniess after creating havoc in the subprime areas.

The experts say the plan is too late as the mortgage defaults are now at stgagering level if you consider the prime sector of the business. Citibank has told Federal Reserve that they must do something to allow these jumbo loans to be refinanced so that the meltdown in subprime loans do not stretch into the prime mortage loans.

The mortgage backed securities even with the credit deault swaps cannotr be priced any more as the level of uncertainity has reached unimaginable proportions. The only way out is to get all these repacked into new loans under government-sponsored mortgage finance where a strick watch can be mainteined on the valuation of these mortagge backed securities.

As mortgage meltdown moves from subprime sector to prime, Bernanke sets out jumbo mortgage plan – can it help in stopping the slow but steady financial meltdown?

As mortgage meltdown moves from subprime sector to prime, Bernanke sets out jumbo mortgage plan – can it help in stopping the slow but steady financial meltdown?
Alan Hershey
Mr Bernanke told Congress he would support raising the limit on the size of the individual loans eligible for government-sponsored mortgage finance from $417,000 to $1m on a temporary basis.
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Weak dollar boosts US exports –will it be enough to avoid a depression?
Marla Guthrie
The biggest question of the day is just one. Will the increase in exports be enough to offset the effects of mortgage meltdown, exploding oil price and stagnating wages?
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Tech stock’s decline of 7% in the past three days -- led by Google and Apple may signal US economy headed for a deep recession – what the impact on world economy?
Sam Adelton
The mortgage meltdown, real estate bubble busrts, $100 oil price and slide of US Dollar has created for the first time a scenario of total financial meltdown and evetual world depression.
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ETrade and Wachovia may have write off half of their mortgage backed securities – the mortgage meltdown continues
Fred Day
. While the real biggies may take time to capitulate, Wachovia and Etrade are in real troubles in spite of casual behavior from these financial institutions.
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Chairman and chief executive of Citigroup stepping down confirming that the mortgage bubble and scam is beyond imagination
Sam Adelton
Things are becoming more transparent. The mortgage bubble and the scam is just beyond anything we have ever seen. Chuck Prince is planning to step down as chairman and chief executive of the banking giant.
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Subprime mortgage losses miniscule compared to what is cooking in the prime mortgage areas –financial meltdown continues with stealth
Peter Oberois
The mortgage bankers made deals with appraisal companies. The code of ethics for the appraisal industry was thrown in the water. The mortgage lenders dictated what the price of home should be.
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