The subprime mortgage market is the business of lending to people with blemished credit or lack of adequate cash for down payments. Wall Street is concerned about the fall in the subprime mortgage market due largely as a result of the cooling housing market. There was a price to 
pay givi
ng loans to people can’t pay them back and now those lending companies are going bankrupt (including New Century Financial Corp. (NEW), the nation’s second-biggest subprime mortgage lender) and your stocks are subject to yet another panic situation. NEW has tanked 90% in share price, last month the shares were in the $30′s, today it trades under $2. There is nothing to be gained by playing the subprime stocks and the impact these lenders have caused on the economy couldn’t have come at a worse time. Bob Ivry from the Detroit news said these depressing comments today: "The deepest national housing decline in 16 years is about to get worse. As many as 1.5 million more Americans may lose their homes, another 100,000 people in housing-related industries could be fired, and an estimated 100 additional subprime mortgage companies that lend money to people with bad or limited credit may go under, according to Realtors, economists, analysts and a Federal Reserve governor." Time to panic? No it’s not. Probably not the best time to sell your house and just make sure you are holding good stocks. If you can’t afford to buy a house – then don’t and above all avoid the fallout worry. Panic article about how subprime will end the world…
Subprime Fallout – So what’s next?
