Analysts warn New Century may not survive
Several analysts agreed Monday that New Century Financial Corp., one of the nation's largest subprime mortgage lenders, likely faces liquidation or bankruptcy following revelations that it's under criminal investigation and in violation of debt covenants with several lenders.
"New Century is more likely to enter the death spiral we had feared, as filing delays, financial difficulties, likely restricted liquidity and regulatory/criminal investigations could conspire to limit its options outside of bankruptcy," Merrill Lynch analysts wrote early Monday.
As troubles continue to roil the market for subprime mortgages, New Century disclosed late Friday that it's technically in default with several lenders and that federal regulators have begun an investigation...
http://www.marketwatch.com/new…%2D8B0D%2D0E4210E07C52%7D
Correction: this could become a crash after all
As traders brace for fresh turmoil, soothing words may simply be hiding reality.
With his low opinion poll ratings, George Bush needs a crash on Wall Street like a hole in the head. The days are ticking away towards the end of his presidency and the Pentagon is warning that unless the "surge" in Iraq works the United States could be heading for another Vietnam.
Little wonder, then, that Washington did its best to rubbish any suggestion that last week's turbulence on the financial markets amounted to anything more than a little temporary difficulty. In this, the Bush administration was ably supported by the great and good of New York - or at least that part of the financial elite that wasn't banged up for alleged insider trading last week by the securities and exchange commission...
http://www.leap2020.eu/index.p…6429277484b9cb3f9ff31d314
Asian Stocks Slump on U.S. Economic Concern; Toyota, HSBC Slide
Asian stocks tumbled to the lowest in two months, extending a global selloff that wiped $1.5 trillion from the value of global shares, on concern U.S. growth will stall.
Toyota Motor Corp. led Japan's stocks to the biggest decline since June after a government report showed consumer confidence dropped in the U.S., Asia's biggest export market. HSBC Holdings Plc, the third-largest bank, dragged the Hang Seng Index down the most in three months after the Sunday Times said it will write off $11 billion to cover mounting losses in America.
``Investors may remain bearish all week as expectations over solid U.S. consumption have dropped,'' said Masaaki Endo, who helps oversee $10 billion at Norinchukin Zenkyoren Asset Management Co. in Tokyo. ``The global plunge made people sensitive to risk.''...
