Sub-Prime Loans: An Endangered Species

As the Bald Eagle removes itself from the Endangered Species list, sub-prime loans may be replacing it. Bear Stearns is (was?) a leader in sub-prime mortgage markets and it recently announced that its investors in its highly-exposed-to-sub-prime-loans funds are now holding paper that is virtually worthless. Several months ago, the value of the combined funds was approximately $1.5 billion, according to the L.A. Times. Today, the assets in the funds are failing so rapidly that there is almost no demand...

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[Source: The Mortgage Reports Blog]