MORTGAGE MELTDOWN

AMERICAN DREAMS BECOME FOREIGN STREAMS

Will “The American Dream” of home ownership be financed by foreign governments? America’s largest bank, Citicorp had to write off $6.5 billion dollars in losses. Guess what, that was just for one quarter. The bank may also have to write off an additional $11 billion dollars in subprime losses. Needless to say, that really creates an unbalanced sheet. So the Saudi’s have stepped in to help anchor the sinking ship. Abu Dhabi has provided Citicorp with some much needed funding. The Country has increased their stake in Citcorp by $7.4 billion dollars. This will surely help write off the subprime loans. Then what? A couple years from now will Americans be filling out loan applications and awaiting approval from underwriters in foreign governments? Please let me know what you think?