Friday, March 23, 2007

Subprime Mortgage Devastation

Forget about the economic effects of this meltdown, this article points out the reality that many neighborhoods around the country will soon be facing.

As an aside, I had been following a business for a little under a year called New Century Financial, a REIT (Real Estate Investment Trust) that was a provider of sub prime mortgages. Their dividend yield was outstanding and I even went through their annual report and the more detailed 10-Q statement. Seeing nothing wrong, I decided to add it to my watch list for a possible purchase.
That was when the stock was hovering around $40. Today, because of the crash, it's trading as a pink stock (de-listed) for under a buck.



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