Wednesday, February 7, 2007

New Century Is Small Spuds Compared to HSBC

HSBC, the parent of subprime lender Household -- the old HI which operates the storefront Beneficial loan stores (remember, "at Beneficial, doot, doot, you're good for more..." -- is looking at huge potential mortgage loan losses: Click here for HSBC. That's $10 BILLION (in my best Carl Sagan voice). Thanks to for the heads up on that. As Lauiston noted in the comments section of the New Century post - Will Wall Street notice these snowballing subprime problems? S&P futures are down less than a point tonight. Likely Ben Bernanke will get an extra piece of kumquat in his fruit cup tomorrow morning, will be happy, and the markets will party like its 1999. Who cares about subprime, right?

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