US credit crunch intensifies
Mortgage foreclosures continue to rise, creating investment losses for a wide range of financial institutions.
The collapse of Bear Stearns is a shocking wake-up call to the severity of the financial crisis.
At last count, more than one in five of the roughly 3.6 million outstanding subprime adjustable-rate mortgages are seriously delinquent.
Compounding that, investment losses are mounting on securities backed by mortgages and on other complex products backed by structured debt, as well as mortgage backed securities themselves.