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That Recovery? Yeah, You Might Not Want To Count On It Too Much
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The pending possible disaster in the banking industry arising from the failure of the banks to properly record and track mortgages is hard to ignore. You're seeing it in the invalidation of foreclosures, but it gets worse; if the mortgages are indeed lost, the hole this will blow in the balance sheets of the major banks might be bigger than any bailout can repair. Or maybe not; analysts are divided. But the problem lies in the fact that investors, including major pension funds, put their money into securities created by pools of mortgages that may not be valid, and they're ready to sue. And whatever happens, you can be sure that you will be paying for it. (Washington Post)
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