Subprime Mortgages Return

Subprime mortgages are starting to default and adding to the already high supply.  Hopefully someone steps in to stop this however it doesn’t sound like the banks want to.

“Experts say this is a bad omen for residential real-estate prices and homeowners trying to sell or refinance, because the fire sales, many to cover soured subprime loans, put downward pressure on the value of nearby homes. All of this undermines federal efforts to stabilize the housing market and revive the broader economy.”

http://online.wsj.com/article/SB124709571378614945.html