Another one...... Bite(ing)s the dust.

Fron : ""INVESTOR GUIDE""
Stock of the Day
American Home Mortgage (AHM)
American Home Mortgage May Be Selling the Farm
Chalk up another victim of the subprime mortgage meltdown: American Home Mortgage. On Tuesday the company said it would no longer be able to fund its loans and that it may be forced to liquidate assets (read: declare bankruptcy). Investors reacted to the sad state of affairs by sending the stock from $10.47 to a low of $1.10, a 90% drop. This is obviously bad news for shareholders of the nation's 10th largest lender, but is probably nothing new to anyone following the industry. How did AHM get into this predicament, and is there any chance that the tables will turn positive?

Is it the signs of the times??........

How do mortgage companies get into trouble from USA TODAY
http://www.usatoday.com/money/perfi/columnist/krantz/2007-03-08-mortgage-profits_N.htm

All the fears are confirmed in the USA. Are we a little behind or complacent?
We have yet to see. But we do understand. Now just wait and see what comes next. Is there a protection fund anywhere for these lenders or some back up at the federal level? My nails are getting shorter and shorter. Am I a bit too nervous or waiting for the coup de grace?

Freddie.

Quote:

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Originally posted by ftfl

All the fears are confirmed in the USA. Are we a little behind or complacent?
We have yet to see. But we do understand. Now just wait and see what comes next. Is there a protection fund anywhere for these lenders or some back up at the federal level? My nails are getting shorter and shorter. Am I a bit too nervous or waiting for the coup de grace?

Freddie.

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