U.S. Mortgage Crisis Spreads past Subprime Loans

International Herald Tribune - U.S. mortgage crisis spreads past subprime loans

The credit crisis is no longer just a subprime mortgage problem.

As U.S. home prices fall and banks tighten lending standards, people with good, or prime, credit histories are falling behind on their payments for home loans, auto loans and credit cards at a quickening pace, according to industry data and economists.

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U.S. Mortgage Crisis Creates Ghost Town

AFP - US mortgage crisis creates ghost town

The streets are empty. Trash rustles down the road past rusted barbecues, abandoned furniture, sagging homes and gardens turned to weed.

This is Mount Pleasant, a neighborhood in southeastern Cleveland ravaged by the subprime mortgage crisis roiling the United States.

Faded "for sale" signs sit in front of deserted houses. The residents are gone, most after being evicted for missing their mortgage payments.

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Housing Bust

The Washington Times - Blame abounds for housing bust

This year's housing bust is shaping up to be one of historic proportions. Sales and construction have sunk to levels not seen since the 1990 savings and loan crisis, while foreclosures and price drops are the largest since the Great Depression — and expected to get worse next year.

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New Century Financial Has Filed For Bankruptcy

Morgan Stanley Issues U.S. Recession Alert

New Century Financial Has Filed For Bankruptcy

BBC - Top US lender in Chapter 11 move

New Century Financial, one of the largest sub-prime lenders in the US, has filed for Chapter 11 bankruptcy.

New Century sought protection from creditors after it was forced by its backers to repurchase billions of dollars worth of bad loans.

The company said it would immediately cut 3,200 jobs, more than half of its workforce, as a result of the move.