AgentIndustry News

Housing needs restoration of new credit

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

Despite a continuing decline in the 10-year T-note to the 4.2s, mortgage rates are stuck near 6.25 percent. That extraordinary spread is due in part to the poisonous status of mortgages; the rest is an aspect of leadership failure in this credit crisis. In times of plague, wagons and carts each day clattered through cities and towns, the draymen calling, "Bring out your dead!" So it is on Wall Street today. You would think by now that surprise would have faded at the number and identity of new shrouds, contagion perfectly obvious. But, no, the secretive and blame-shifting culture of Wall Street is intact, markets as shocked each new day as the last. Markets weakened by oil and dollar worries were hit with a new wave of credit news on Wednesday: Capital One (the credit card giant), IndyMac and other banks indicated deepening trouble; and credit insurers MBIA and Ambac continued their nosedive, exposing $1 trillion worth of insured bonds. All a complete surprise, of course. That sam...