Mortgage crisis deepens in US
The mortgage crisis has raised its head once again in US this week, with the two of the top mortgage firms Freddie mac and Frannie going dry on liquidity. Rumors were afloat throughout the US that these two firms are on the verge of collapse and take over from FED is quite imminent. This lead to both the shares losing nearly 50% in one day yesterday before marginal recovery.
Post this on the day end, there were reports of another leading mortgage lender Indymac going bankrupt. This was due to the run on by the depositors which could not be handled by the bank on short notice. FED is expected to announce takeover of Indymac by some other suitor next week.