Archive for the 'financial crisis' Category

US Sub-prime crisis and foreclosures

Friday, December 7th, 2007

The most recent news is that in October, the number of foreclosures has nearly doubled to 225000. About 2 million home owners are potentially facing foreclosures when their adjustable rate mortgages resets at higher rate. The distribution of sub-prime lending across the US is shown in this map taken from the New York Times

ussubprime.jpg

The political costs of this might however have been anticipated by Bush’s administration, (more…)

Home mortgages and sub-prime crisis: some technical notes

Thursday, December 6th, 2007

Here is a graphical representation of the home mortgage system which has generated the sub-prime crisis. It is a free re-elaboration of a diagram circulated by Fred Moseley at the recent Historical Materialism conference in London on Nov 9-11.

homemortgages.jpg

Few observations. (more…)