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Article: Commentary: Home Equity Loans May Present Subprime Redux; Fed "fiddles" while U.S. banking problems and consumer credit crunch worsen.(Survey)
- Article from:
- Gallup Poll News Service
- Article date:
- December 12, 2007
- Author:
CopyrightCOPYRIGHT 2007 Gallup Organization. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Dennis Jacobe, PhD Gallup Chief Economist
Synopsis: FOMC action suggests that the Fed still "doesn't get it." The credit crunch is spreading to Main Street as signs of the forthcoming home equity loan debacle are beginning to surface.
PRINCETON, NJ -- Wells Fargo gave consumers a small hint a few weeks ago about what is to come if housing remains depressed and the pace of mortgage foreclosures builds. Wells Fargo's write-off of $1.4 billion on $11.9 billion of home equity loans it feels are currently most at risk is just the tip of the iceberg for financial institutions. Many major financial institutions, as well as most of their smaller banking ...