Chicken Little and the Mortgage-Housing Crisis
Posted by leftofdayton on November 29, 2007
Maybe Chicken Little is right, the sky IS falling! I don’t know about you but the news about the resignation of Citigroup CEO Charles Prince, [who will no doubt exit the crisis with his pockets stuffed...] coming on the heels of an announced loss over at Merrilly-Lynched of about 8 BILLION DOLLARS, is starting to sound more and more like the dam is slowly breaking apart. I’m no Paul Krugman or Thomas Friedman economist type….but the creaking I hear sure don’t sound good.
On Sunday, the chairman and chief exec of Citigroup, Inc., Charles Prince, threw in his ATM card and stepped down — this as the bank announced it would probably have to write off 11 BILLION dollars in subprime mortgage losses……now, if this sounds a bit like old news, it may be because Citicorp just wrote down 6.5 BILLION lastquarter
Thats TWO companies, and 25 Billion Dollars. And, it doesn’t even begin to add in the fallout from the really big mortgage & housing construction companies, AND Fannie & Sallie Mae…drip drip drip…
