New Era

Currently there is a huge meltdown in the sub-prime mortgage sector in the united states. In the past two months there has been huge number of lenders who have become bankrupt, statistics say the numbers as 22. Companies like Indymac went bankrupt recently followed by reduction of fellow companies like freddie mac’s market value to about less than half. US mortgage sector is facing great crisis and worse times hit HSBC as they recently set aside $10.1bn to cover the bad loans.Nouriel Roubini who is an economics professors warns that such housing busts are slowly pulling our country into recession.The trend seemed to continue as more and more lenders end into crisis.