The CBS News Magazine did a piece last night on the foreclosure debacle in this country.  Much of the segment focused on Stockton, California.  The Denver real estate market was not mentioned.

I think we’re all getting accustomed to hearing about the sub-prime mortgage mess, but what I found interesting about last night’s report was the financial analyst who explained why this crisis is NOT simply an American crisis.  These sub-prime mortgages were packaged into mortgaged backed security packages and then sold (as part of a complex basket of securities) to financial institutions all around the world including unions, pension funds, national banks, etc.  Yes, national banks.  Meaning foreign countries are currently holding large chunks of this mess.  Meaning that if we head into a recession there is the real possibility that other countries may follow us to the extent that they hold these security packages sold to them by the big investment houses on Wall Street.  A frightening prospect indeed.

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This entry was posted on Monday, January 28th, 2008 at 7:25 am and is filed under Denver, CO. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.