Tuesday, September 23 2008
Here we have an interesting article on the present banking situation. We need to keep in mind thought that the situation in the Tri-State area is not that of other markets. We tend to weather these down turns better as we do not have the same unsustainable increases in value in a short time. To put numbers in perspective currently there are 53 million first mortgages in effect of which about 3% or 1.4 million are classified as sub-prime mortgages. These mortgages are bundled together with the performing mortgages so the end effect is that the situation is not as bad as we hear. The concern however is, that this downturn will have signs of a depression as other markets are affected as well.