The Edge Malaysia (week of January 21-27, 2008) on its front page was printed: On the cusp of recession - all signs point to a recession in the US as the fallout from the subprime mortgage crisis takes a toll on its economy. Global share prices drowned in a sea of red as jittery investors fled for cover. Is Asia, including Malaysia, in a better position to weather the downturn? the business and investment weekly asked.... I dunno man, scary...now read the Headline, page 1, Boston Globe, dated 20th January 2008 below:
"Broker's clients detail web of dashed dreams"
"When Marcia Neilson couldn't qualify for a home loan in early 2006 because of poor credit, her mortgage broker, Nicole Lyder, had an unusual solution: Add Neilson's daughter to the loan application.
"Neilson's 21-year-old daughter had just lost her job, but Lyder remained undeterred. 'That wasn't a problem,' Neilson recalled her broker saying.
"Neilson's real estate agent said Lyder enlisted him to drive Neilson and her daughter to Brockton City Hall. The pair filled out a business certificate that claimed they owned a hair salon in Brockton.
"The Neilsons qualified for a mortgage and bought a Dorchester house in June 2006 for $565,000. Last fall, Marcia Neilson learned from state investigators looking into Lyder's business practices that her loan application was padded in other ways: a statement for a $25,000 bank account in Neilson's name that she had no knowledge of.
"Fake documents, a phantom borrower, and other irregularities were common features of five subprime mortgages brokered by Lyder between November 2005 and June 2006 that were examined by the Boston Globe. Lyder's clients ranged from the barely employed to struggling working-class couples; one had just left a homeless shelter and two others gave up government-subsidized housing to buy homes. They said Lyder arranged loans that they later realized had monthly payments that far exceeded their means. All five loans are now in foreclosure." (courtesy of tompeters blog)
I don't wanna sound pessimistic but it would be wise to prepare for the worst. Never get caught with your pants down, so the saying goes...heheh. Hope you guys out there made the most of the thaipusam public holiday today heheh...and did not contribute to littering the roadside with coconuts...hahaha